Why Are Commodities Stable Early on September 19?
The US dollar’s decreased upward momentum is supporting commodities in the early hours on September 19. Last week, crude oil regained strength and rose higher. Crude oil maintained its strength and started this week on a stronger note. On Tuesday, crude oil started the day on a stronger note and traded with strength at seven-week high price levels.
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In the crude oil market, the market sentiment has improved last week. Refineries recovered from the impact of Hurricane Harvey. Hurricane Irma was downgraded at the beginning of last week, which also supported crude oil prices. The prices gained momentum last week after the International Energy Agency reported an improved demand outlook for crude oil. On Tuesday, the market is strong before the American Petroleum Institute’s weekly crude oil inventory report at 4:35 PM EST today. The market expects the inventory levels to rise by 2.68 million barrels.
At 6:50 AM EST on September 19, the West Texas Intermediate crude oil futures contracts for November 2017 delivery were trading at $50.77 per barrel—a gain of ~0.83%. The Brent crude oil futures contracts for November 2017 delivery rose 0.67% and traded at $55.87 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $32.11 after rising 0.88% on September 18.
After falling for two consecutive trading weeks, copper prices started to rebound this week. Last week, copper prices fell amid China’s weaker-than-expected economic data. The data raised concerns about China’s economic stability. China’s strong new loans data improved the copper’s market sentiment this week.
Gold (GLD) and silver (SLW) are stable in the early hours on September 19. The market’s decreased risk appetite before the Fed’s interest rate meeting statement supported gold prices. Platinum and palladium are weak in the early hours on September 19.