Commodities Are Stable Early on September 29
After rising for three consecutive trading weeks, crude oil started this week on a stronger note. However, the market lost momentum as the week progressed and pulled back on Thursday. Crude oil is stable in the early hours on September 29, 2017.
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The market sentiment on crude oil is strong this week amid increased signs of market rebalancing. Lower inventory levels along with supply disruptions are supporting crude oil prices. Turkey cutting off export pipelines from the Kurdish region also strengthened the sentiment. Market participants expect crude oil’s demand to improve as US refineries restart their operations after Hurricane Harvey. The market is looking forward to the release of US oil rig count data by Baker Hughes at 1:00 PM EST.
At 6:55 AM EST on September 29, the West Texas Intermediate crude oil futures contracts for November 2017 delivery were trading at $51.64 per barrel—a gain of ~0.14%. The Brent crude oil futures contracts for December 2017 delivery fell 0.07% and traded at $57.12 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $34.20 after falling 0.49% on September 28.
Concerns about China’s economic stability weighed on copper prices for three weeks. Amid China’s strong industrial profit data, copper prices started this week higher and lost some strength amid the firm dollar. Renewed hopes for China’s economic stability strengthened copper on Thursday. Copper is stable in the early hours on Friday.
Gold (GLD) and silver (SLW) are stable in the early hours. After falling to six-week low price levels, gold prices started to recover in the early hours on September 29. The US dollar pulled back from one-month high levels, which gave gold room to recover. The firmer dollar weighs on the prices of dollar-denominated commodities. Platinum and palladium are stable in the early hours on September 29.