Commodities Are Mixed in the Early Hours on December 7
After a brief pullback last week, crude oil started this week on a weaker note and fell as the week progressed. Crude oil opened higher on Thursday and traded with strength above the opening prices in the early hours.
Interested in GLD? Don't miss the next report.
Receive e-mail alerts for new research on GLD
The market sentiment on crude oil was weak at the beginning of this week amid an increase in profit-booking at elevated levels and decreased risk appetite ahead of the release of US crude oil inventory levels. Despite a decline in US inventory levels, the market continued to fall as higher weekly crude oil inventory levels raised concerns about US oil demand. According data released by the U.S. Energy Information Administration, US crude oil inventories fell by 5.610 MMbbls (million barrels) last week. The inventories fell more than the expectation of 3.404 MMbbls.
At 6:30 AM EST on December 7, the West Texas Intermediate crude oil futures for January 2018 delivery were trading at $56.20 per barrel—a gain of 0.42%. The Brent crude oil futures for February 2018 delivery rose 0.72% to $61.66 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $34.55 after falling 3.06% on December 6.
Following a weak performance last week, copper started this week on a weaker note and fell as the week progressed. Concerns about China’s copper demand and a rise in the inventory levels weighed on copper prices this week. On Thursday, copper rebounded from the levels in September and traded with strength in the early hours.
Gold (GLD) and silver (SLW) were weak in the early hours on Thursday. The strong dollar along with the improved global market sentiment weighed on gold prices. The firm dollar weighs on dollar-denominated commodities like gold and silver. Platinum is weak, while palladium is stable in the early hours.