Commodities Are Mixed, Crude Oil Waits for Rig Count Data
After a sharp fall for two consecutive days, crude oil prices regained strength and moved higher. The market sentiment was dented by the unexpected rise in crude oil inventory levels, according to weekly reports.
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According to the U.S. Energy Information Administration, crude oil inventories rose to 528.4 million barrels—a record level. The higher inventory levels offset the output cuts by OPEC and non-OPEC producers. The market is looking forward to the oil rig count data by Baker Hughes scheduled to release at 1:00 PM EST.
On March 26, OPEC and non-OPEC producers are meeting in Kuwait to review output cut compliance. At 6:45 AM EST on March 10, the WTI crude oil futures contract for April 2017 delivery was trading at $49.61 per barrel—a gain of ~0.69%. The Brent crude futures contract for May 2017 delivery rose ~0.63% to $52.51 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $36.20 after rising 0.7% on March 10.
After falling for four consecutive trading days, crude oil prices regained strength in the early hours on March 10. Slight weakness in the US dollar and increased buying at lower levels helped copper prices. At 6:50 AM EST on March 10, the COMEX copper futures contract for May 2017 delivery was trading at $2.59 per pound—a gain of ~0.39%. The PowerShares DB Base Metals ETF (DBB) fell 0.25%, while the SPDR S&P Metals & Mining ETF (XME) fell 1.6% on March 9. Gold (GLD) and silver (SLW) are weaker in the early hours amid increased chances of a US interest rate hike in March. Platinum prices are stable, while palladium is weaker in the early hours.