Commodities Are Mixed in the Early Hours on November 10
After gaining for four consecutive trading weeks, crude oil started this week on a stronger note. Crude oil rose to 24-month high price levels on Monday but lost momentum as the week progressed. On Friday, crude oil opened the day on a mixed note and traded above the opening prices in the early hours.
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For crude oil, the market sentiment is strong amid growing hopes of an extension of OPEC’s supply cut agreement in producers’ meeting in November. Crude oil regained strength on Thursday amid Saudi Arabia’s plan to decrease crude oil exports. According to the spokesman for Saudi Arabia’s energy ministry, steps are being taken to decrease the exports by 0.12 million barrels in November and December. The market is looking forward to the release of US oil rig count data by Baker Hughes at 1:00 PM EST today.
At 6:20 AM EST on November 10, the West Texas Intermediate crude oil futures contracts for December 2017 delivery were trading at $57.09 per barrel—a fall of ~0.14%. The Brent crude oil futures contracts for January 2018 delivery rose 0.06% and traded at $63.91 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $36.60 after rising 1.4% on November 9.
After starting this week on a stronger note, copper lost strength as the week progressed and reached one-month low price levels on Thursday. However, the market opened higher on Friday and rebounded from the one-month low price levels. The weaker dollar is supporting copper prices in the early hours.
Gold (GLD) is weak in the early hours on November 10 and silver (SLW) is trading near the opening prices. Gold is weak because the demand fell to seven-year low levels in 3Q17. On the other hand, weakness in the dollar is extending support to gold. The weakness in the dollar supports the prices of dollar-denominated commodities like copper, gold, and silver. Platinum and palladium are weak in the early hours on November 10.