Commodities Are Strong in the Early Hours on September 13
Crude oil fell for five consecutive trading weeks and regained its strength last week. With renewed market sentiment, crude oil started this week on a stronger note and rose in the first two trading days. On Wednesday, it started the day higher and traded with strength in the early hours.
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The crude oil market’s sentiment improved this week. Hurricane Irma was downgraded and refineries impacted by Hurricane Harvey restarted their operations. Crude oil picked up its momentum on Wednesday amid a report by the IEA (International Energy Agency). The IEA increased the crude oil demand forecast. The 2017 demand has been revised from 1.5 MMbbls (million barrels) to 1.6 MMbbls. On the other hand, the market is waiting for the release of the weekly crude oil inventory report by the U.S. Energy Information Administration at 10:30 AM EST today. According to the American Petroleum Institute’s inventory report on September 12, the crude oil inventory levels rose by 6.181 MMbbls—higher than analysts’ forecast of 6 MMbbls.
At 7:20 AM EST on September 13, the West Texas Intermediate crude oil futures contracts for October 2017 delivery were trading at $48.66 per barrel—a rise of ~0.89%. The Brent crude oil futures contracts for November 2017 delivery rose 0.74% and traded at $54.67 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $30.83 after rising 2.2% on September 12.
After pulling back last week amid profit-booking, copper prices rebounded on Monday but lost strength as the week progressed. Rising stocks in London Metal Exchange warehouses and funds selling at high prices weighed on copper today.
Gold (GLD) and silver (SLW) are strong in the early hours on Wednesday. The dollar pulled back in the early hours before the US economic data, which supported gold prices. A weak dollar supports the prices of dollar-denominated commodities like gold, silver, and copper. Platinum and palladium are stable in the early hours on September 13.