After regaining strength and gaining for two consecutive trading days to the highest levels in more than a week, crude oil prices are weaker in the early hours on May 12. Profit-booking ahead of US economic data is weighing on crude oil prices in the early hours.
Inventory data improved the sentiment
The sentiment improved amid increased expectations of a supply cut agreement extension. The market was also supported by crude oil inventory reports this week by the API (American Petroleum Institute) and EIA (U.S. Energy Information Administration). According to the EIA, crude oil inventory levels in the week ending on May 5 fell by 5.247 MMbbls—the market expected a decline of 1.786 MMbbls. Profit-booking ahead of US economic data and oil rig count data are weighing on prices. Baker Hughes’s oil rig count is scheduled to release at 1:00 PM EST today.
At 7:20 AM EST, West Texas Intermediate crude oil futures contracts for June 2017 delivery were trading at $47.76 per barrel—a fall of ~0.15%. Brent crude futures contracts for July 2017 delivery fell ~0.04% and were trading at $50.76 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $35.43 after falling 0.59% on May 12.
After regaining some strength on Thursday, copper prices opened higher on Friday and continued to strengthen in the early hours. The rebound in copper prices is supported by the rebound in China’s market on Friday. Considering that China accounts for almost half of the global copper demand, China’s economic strength impacts copper’s demand and price trends. The market is looking forward to investment and industrial activity in China scheduled to release next week.
The PowerShares DB Base Metals ETF (DBB) fell 0.07%, while the SPDR S&P Metals & Mining ETF (XME) rose 0.07% on May 11. Gold (GLD) and silver (SLW) are stronger in the early hours on May 12. Gold regained strength amid political uncertainty in the US. Platinum is slightly weaker, while palladium is stable in the early hours on May 12.