Commodities Are Mixed Early on September 18
After rising for two consecutive trading weeks, crude oil started this week on a stronger note by opening higher on Monday. In the early hours on September 18, crude oil is trading with strength.
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The crude oil’s market sentiment improved last week amid operations restarting at refineries that were shut down due to Hurricane Harvey. Hurricane Irma’s downgrade also improved the market sentiment last week. Despite the build in the inventory levels reported by U.S. Energy Information Administration last week, crude oil stayed strong due to the improved demand outlook. Last week, the International Energy Agency reported an increase in crude oil’s yearly demand forecast and lower supplies. Amid increased bullish momentum, crude oil is trading at five-month high price levels in the early hours.
At 6:50 AM EST on September 18, the West Texas Intermediate crude oil futures contracts for October 2017 delivery were trading at $50.33 per barrel—a fall of ~0.22%. The Brent crude oil futures contracts for November 2017 delivery fell 0.27% and traded at $55.47 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $31.83 after rising 0.16% on September 15.
After falling to one-month low price levels last week, copper regained its strength this week. Copper opened higher on Monday and traded with strength amid China’s improved economic outlook. Last week, copper fell amid profit-booking and concerns about stability in China’s economy. Copper recovered on Monday amid China’s stronger-than-expected new loans data. Considering that China is the largest copper consumer, China’s economic conditions impact copper’s demand and price trends.
Gold (GLD) and silver (SLW) are weak in the early hours. On Monday, gold started the day on a weaker note amid the improved global market sentiment. The strong dollar also weighed on precious metal prices. The firmer dollar weighs on the prices of dollar-denominated commodities like gold and silver. Platinum is weak, while palladium is stable in the early hours on September 18.