Crude oil prices pulled back last week and broke a two-week rising streak. Crude oil prices were stronger at the beginning of last week but lost strength after the outcome of producers’ meeting on May 25.
Market awaits crude oil data
OPEC extended the crude oil supply cut agreement for nine more months without deeper production cuts, which dented the sentiment in the crude oil market last week. Liquidity was lower in the crude oil market on Monday—markets in the United Kingdom, the US, and China were closed. With producers’ meeting ending last week, the market’s focus shifted to the American Petroleum Institute’s crude oil inventory report and the U.S. Energy Information Administration report that are scheduled to release on May 31 and June 1.
At 7:10 AM EST, West Texas Intermediate crude oil futures contracts for July 2017 delivery were trading at $49.60 per barrel—a fall of ~0.4%. Brent crude futures contracts for July 2017 delivery fell ~0.39% and were trading at $52.30 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $33.93 after rising 0.24% on May 26.
Copper prices strengthened in recent days and gained for two consecutive trading weeks. In the early hours on May 29, copper was slightly weaker with lower volumes amid holidays in China, the United Kingdom, and the US. Copper regained strength amid a decline in inventory levels and signs of improved sentiment in Chinese markets. Considering that China is the largest copper consumer, economic conditions in China will impact copper’s demand and price trends.
The PowerShares DB Base Metals ETF (DBB) fell 0.19%, while the SPDR S&P Metals & Mining ETF (XME) fell 0.14% on May 26. Gold (GLD) and silver (SLW) were stable in the early hours on May 29. Gold was trading near one-month high price levels—the sentiment is supported by political tension in the US. Platinum was weaker, while palladium was stable in the early hours.