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Commodities Are Mixed in the Early Hours on April 25

Val Kensington - Author
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Nov. 20 2020, Updated 3:01 p.m. ET

Crude oil

After falling for six consecutive trading days, crude oil prices are stable in the early hours on Monday. The market is stable amid optimism about the extension of supply cuts by OPEC.

The overall sentiment in the market is weaker amid increasing US shale oil output and US drilling activity. The market is looking forward to the API’s (American Petroleum Institute) crude oil inventory report scheduled to release today. The API’s report will be followed by the U.S. Energy Information Administration’s inventory report on April 26. With the supply cut agreement coming into action in January 2017, the market expected the supply-demand balance to be achieved in the oil market in 2H17. With the effects of supply cuts offset by an increase in oil rigs, US shale oil production, and inventory levels, it looks like the oil market will take more time to rebalance.

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At 7:30 AM EST on April 25, the West Texas Intermediate crude oil futures contract for June 2017 delivery was trading at $49.26 per barrel—a gain of ~0.04%. The Brent crude futures contract for July 2017 delivery rose ~0.08% to $52.17 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $35.38 after rising 0.77% on April 24.

Metals

After starting the week on a positive note on Monday, copper prices continued to trade higher. The rise in Asian markets on Tuesday improved the sentiment in the copper market and prices are stable in the early hours. The increased risk appetite is supporting copper prices that are trading at one-week high price levels on Tuesday. At 7:30 AM EST on April 25, the COMEX copper futures contract for July 2017 delivery was trading at $2.58 per pound—a gain of ~0.62%. The PowerShares DB Base Metals ETF (DBB) rose 0.57%, while the SPDR S&P Metals & Mining ETF (XME) rose 1.8% on April 24.

Precious metal commodities are weaker in the early hours. Gold (GLD) and silver (SLW) were weaker in the early hours as global tensions eased amid Macron’s lead in France’s presidential election. Platinum and palladium are also trading weaker in the early hours. Read Pre-Market Research Report- US Markets Surged amid Decreased Geo-Political Concerns to learn why Wall Street indices rose higher on April 24.

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