After pulling back last week, the crude oil market sentiment is weaker amid supply concerns. The crude oil market is stable in the early hours on Monday, but the overall sentiment in the market is weaker.
Expectations of an extension of the supply cut agreement by OPEC is supporting crude oil prices in the early hours. Comments from Saudi Arabia and Kuwait’s oil ministers last week increased speculations. The decline in production from Iran also supported oil prices in the early hours.
On the other hand, the market sentiment is weaker due to the rise in US drilling activity. According to data reported by Baker Hughes, the oil rig count rose for the fourteenth week in a row to 688 rigs by adding three rigs. The market expects increased US shale oil production in May amid an increase in drilling activity.
At 7:10 AM EST on April 24, the West Texas Intermediate crude oil futures contract for June 2017 delivery was trading at $50.02 per barrel—a gain of ~0.89%. The Brent crude futures contract for July 2017 delivery rose ~0.84% to $52.88 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $35.11 after rising 0.34% on April 21.
After falling for three consecutive trading days, copper opened higher on Monday. Signs of increasing demand from China, the weaker dollar, and easing global tensions are supporting copper prices. The weaker dollar supports the prices of dollar-denominated commodities such as copper and crude oil. At 7:15 AM EST on April 24, the COMEX copper futures contract for May 2017 delivery was trading at $2.57 per pound—a gain of ~0.55%. The PowerShares DB Base Metals ETF (DBB) fell 0.88%, while the SPDR S&P Metals & Mining ETF (XME) fell 0.27% on April 21. 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 is weaker, while palladium is stable in the early hours.