Commodities Are Mixed Early on June 29
After gaining for five consecutive trading days, crude oil prices continue to show strength on Thursday. In the early hours on June 29, crude oil prices are trading with strength amid decreased supply glut concerns.
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Despite the rebound in crude oil prices, the market sentiment is still bearish this week amid a lack of positive results from the supply cut agreement. Higher crude oil inventory levels reported by the API (American Petroleum Institute) brought back caution in oil markets. However, the sentiment improved on Wednesday after the EIA (U.S. Energy Information Administration) released last week’s US inventory and output details. According to the EIA, crude oil inventories rose by 0.118 MMbbls (million barrels) in the week ending June 23. The market expected stock levels to fall by 2.585 MMbbls. On the other hand, the EIA reported a decline in US oil output last week. According to the EIA, weekly US oil production fell by 100,000 bpd (barrels per day) to 9.3 million bpd, which supported oil prices and improved the sentiment. Gasoline inventories fell by 894,000 barrels, which also strengthened the oil movement.
At 7:10 AM EST, West Texas Intermediate crude oil futures contracts for August 2017 delivery were trading at $45.19 per barrel—a rise of ~1.0%. Brent crude futures contracts for September 2017 delivery rose ~0.93% and were trading at $47.98per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $31.31 after rising 0.58% on June 28.
After rising on Wednesday and closing at three-month high price levels, copper is trading with strength in the early hours on Thursday. Improved sentiment in Chinese markets and the weaker dollar are supporting copper prices. Considering that China is the largest copper consumer, China’s economic outlook will impact copper’s demand and price trends.
The PowerShares DB Base Metals ETF (DBB) rose 0.25%, while the SPDR S&P Metals & Mining ETF (XME) rose 3.2% on Wednesday. After regaining some strength for two days, gold (GLD) prices pulled back in the early hours on Thursday. On the other hand, silver (SLW) is stable. The weaker dollar supports dollar-denominated commodities like gold and silver. Platinum is weaker, while palladium is stable in the early hours.