After regaining strength on Tuesday and breaking the six-day losing streak, crude oil prices opened lower on April 26 and traded weaker. The oil market sentiment was dented by the rise in crude oil inventories.
According to data released by the API (American Petroleum Institute), crude oil inventory levels in the week ending April 21 rose by 0.897 MMbbls (million barrels). The market was expecting inventories to fall by 1.3 MMbbls. The fall in inventory levels weighed on crude oil prices. The market is looking forward to the U.S. Energy Information Administration’s oil inventory report. The report is scheduled to release at 10:30 PM EST today. The market expects inventory levels to fall by 1.661 MMbbls.
Optimism about the extension of supply cut agreements supported crude oil prices on April 25. However, the support was short-lived because the API’s inventory report weakened the sentiment. At 6:40 AM EST on April 26, the West Texas Intermediate crude oil futures contract for June 2017 delivery was trading at $49.36 per barrel—a fall of ~0.40%. The Brent crude futures contract for July 2017 delivery fell ~0.4% to $52.34 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $36.09 after rising 2.0% on April 25.
After gaining for two consecutive trading days, copper prices are slightly weaker in the early hours due to the positive dollar. The firmer dollar weighs on dollar-denominated commodities such as copper and crude oil. On the other hand, the sentiment is stronger amid increased risk appetite and expectations of a rise in demand from China. At 6:45 AM EST on April 26, the COMEX copper futures contract for July 2017 delivery was trading at $2.59 per pound—a fall of ~0.15%. The PowerShares DB Base Metals ETF (DBB) and the SPDR S&P Metals & Mining ETF (XME) rose 0.69% on April 25.
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 and expectations of tax reforms from President Trump. Platinum is weaker, while palladium is stable in the early hours. Read Why Did the S&P 500, NASDAQ, and Dow Rise on April 25? to learn why Wall Street indices rose higher on April 25.