After falling for five consecutive trading days, crude oil prices are stable in the early hours on Tuesday. The market is looking forward to OPEC’s monthly report scheduled to release today.
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Even though crude oil output cuts improved the market sentiment, concerns about an increase in US shale oil production and an unexpected rise in crude oil inventory levels weighed on oil prices. According to the U.S. Energy Information Administration, crude oil inventory levels rose to a record level of 528.4 million barrels.
On March 26, OPEC and non-OPEC producers are meeting in Kuwait to review output cut compliance. At 6:55 AM EST on March 14, the WTI crude oil futures contract for April 2017 delivery was trading at $48.76 per barrel—a gain of ~0.74%. The Brent crude futures contract for May 2017 delivery rose ~0.90% to $51.81 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $36.36 after rising 0.69% on March 13.
After gaining for two consecutive trading days, copper prices are stable in the early hours on March 14. Supply disruptions in major copper mines in Indonesia and Chile are supporting the prices. The strike at Freeport-McMoRan’s Cerro Verde mine started on Friday. The strike continues amid failed talks between the union and management. On the other hand, the firmer US dollar ahead of the Fed’s much-awaited interest rate meeting is weighing on copper.
At 7:00 AM EST on March 14, the COMEX copper futures contract for May 2017 delivery was trading at $2.63 per pound—a gain of ~0.02%. The PowerShares DB Base Metals ETF (DBB) rose 0.82%, while the SPDR S&P Metals & Mining ETF (XME) rose 1.2% on March 13. Gold (GLD) and silver (SLW) are slightly weaker in the early hours before the Fed’s meeting. Platinum and palladium prices are weaker in the early hours.