Why Are Commodities Mixed Early on September 28?
Continuing the three-week rising streak, crude oil started this week on a stronger note. After a brief pause for a rally on Tuesday, crude oil rose on Wednesday and started higher on September 28. Crude oil is trading with strength in the early hours on September 28.
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The market sentiment on crude oil was strong at the beginning of this week. Signs of market rebalancing along with export disruptions from Iraq to Kurdistan pushed crude oil prices higher. Lower inventory levels also strengthened the market. According to the U.S. Energy Information Administration’s weekly inventory report, crude oil inventories fell by 1.846 MMbbls (million barrels). The report supported crude oil because the market expected the inventory levels to rise by 3.422 MMbbls.
At 7:35 AM EST on September 28, the West Texas Intermediate crude oil futures contracts for November 2017 delivery were trading at $52.69 per barrel—a gain of ~1.1%. The Brent crude oil futures contracts for December 2017 delivery rose 0.59% and traded at $57.91 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $34.37 after rising 0.73% on September 27.
Copper fell for three consecutive trading weeks amid concerns about China’s economic stability and profit-booking at elevated levels. However, the strong industrial profits data improved the confidence in China’s market outlook and supported copper prices. Copper opened higher on Thursday and traded with strength in the early hours. Gold and silver are weak in the early hours amid the market’s increased risk appetite. The firm dollar weighs on dollar-denominated commodities like copper, gold, and silver. Platinum and palladium are strong in the early hours on September 28.