Crude oil is weaker
Crude oil prices are weaker in the early hours on December 14 due to the weekly crude oil inventory report. According to weekly crude oil inventory data released by the American Petroleum Institute, crude oil inventory levels rose by 4.7 MMbbls (million barrels) in the week ending on December 9. It’s disappointing—the market expected inventory levels to fall by 1.5 MMbbls.
The pressure on prices mounted as the IEA (International Energy Agency) reported the OPEC supplied record levels of crude oil in November. According to the IEA, OPEC produced 34.2 million barrels per day in November. At 5:40 AM EST on December 14, the West Texas Intermediate crude oil futures contract for January 2017 delivery was trading at $52.42 per barrel—a fall of ~1.1%. The Brent crude futures contract for February 2017 delivery fell ~1.0% to $55.16 per barrel. The SPDR S&P Oil & Gas Exploration & Production (XOP) rose 1.2% on December 13.
Copper is stable in the early hours
After falling for two days, copper prices are stable in the early hours on December 14 ahead of the Fed’s interest rate decision. Weakness in the US dollar is supporting copper prices early on December 14. According to Goldman Sachs, the sentiment is bullish for copper through 1H17 due to an increase in demand. At 5:45 AM EST on December 14, the COMEX copper futures contract for March 2017 delivery is trading at $2.60 per pound—a gain of ~0.13%. The PowerShares DB Base Metals (DBB) and the SPDR S&P Metals & Mining (XME) fell 0.45% and 0.64% on December 13.
Gold (GLD) and silver are stable in the early hours ahead of the Fed’s interest rate decision. At 5:45 AM EST, the COMEX gold futures contract for February delivery fell to $1,163.35 per ounce—a gain of 0.38%. The silver futures contract for March 2017 delivery gained ~0.95% to $17.14 per ounce. The market is waiting for the Fed’s interest rate decision and conference. After gaining strength this week, the platinum futures are stable in the early hours. Unlike other precious metals, palladium is weaker in the early hours.