After regaining strength last week, crude oil prices continued to rise. In the early hours on April 5, oil is trading at one-month high price levels. The market sentiment improved last week amid speculations about the extension of producers’ supply cut agreement.
According to data released by the American Petroleum Institute yesterday, crude oil inventory levels in the week ending March 31 fell by 1.8 MMbbls (million barrels)—a deeper drawdown than the expectation of 0.5 MMbbls. The fall increased expectations of an inventory drawdown in official inventory data. The market is looking forward to the release of inventory data by the U.S. Energy Information Administration scheduled for 10:30 AM EST today.
At 6:55 AM EST on April 5, the West Texas Intermediate crude oil futures contract for May 2017 delivery was trading at $51.46 per barrel—a gain of ~0.84%. The Brent crude futures contract for June 2017 delivery rose ~0.78% to $54.59 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $37.79 after rising 1.3% on April 4.
After regaining some strength yesterday, copper prices opened higher and moved higher in the early hours on April 5. The return of Chinese traders to the market after two days of holidays due to Tomb Sweeping Day increased momentum in the market. The market is awaiting the meeting between President Trump and President Xi Jingping scheduled for April 6.
At 7:00 AM EST on April 5, the COMEX copper futures contract for May 2017 delivery was trading at $2.65 per pound—a gain of ~1.4%. The PowerShares DB Base Metals ETF (DBB) rose 0.74%, while the SPDR S&P Metals & Mining ETF (XME) rose 1.2% on April 4. Gold (GLD) and silver (SLW) are weaker in the early hours. They’re waiting for the Fed’s meeting minutes scheduled to release today. Platinum and palladium are stable in the early hours.