After pulling back on Monday, crude oil prices are trading lower in the early hours on February 28. The market sentiment is mixed amid price supporting production cuts and bearish sentiment from a rise in US crude oil production.
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At the end of last year, OPEC members agreed to cut crude oil production to balance the market and support weaker oil prices. The target is to cut production by 1.2 million barrels per day starting on January 1, 2017. Producers’ high compliance to the output cut pledge is supporting the market sentiment. According to the CFTC’s (Commodity Futures Trading Commission) recent report, long positions in crude oil increased.
According to recent oil rig count data by Baker Hughes, the oil rig count rose to 602 from 597. At 5:45 AM EST on February 28, West Texas Intermediate crude oil futures contracts for April 2017 delivery were trading at $53.96 per barrel—a fall of ~0.15%. Brent crude futures contracts for March 2017 delivery rose ~0.14% to $56.34 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) rose 0.79% on February 27.
After gaining for two consecutive trading days, copper prices are weaker in the early hours on Tuesday. Prices are slightly weaker amid profit-booking before President Trump’s speech today. Prices are supported by supply outages in major suppliers like Indonesia and Chile.
At 5:50 AM EST on February 28, COMEX copper futures contracts for March 2017 delivery were trading at $2.69 per pound—a fall of ~0.33%. The PowerShares DB Base Metals ETF (DBB) fell 0.18%, and the SPDR S&P Metals & Mining ETF (XME) rose 0.19% on February 27. Gold (GLD) and silver (SLW) were weaker in the early hours before President Trump’s speech. Platinum and palladium were weak in the early hours.