The sentiment in the oil market improved after the EIA’s (U.S. Energy Information Administration) crude oil inventory report. The report showed a decline in inventory levels. Crude oil prices regained strength and rose to three-week high price levels on May 17. However, crude oil prices are weaker in the early hours on May 18.
Market awaits producers’ meeting on May 25
Crude oil started this week on a stronger note amid increased chances of an extension of the supply cut agreement. However, doubts about the ability of supply cuts to bring demand-supply balance into oil market are still weighing on prices. In the early hours, crude oil prices are weaker due to dented global market sentiment. The political situation in the US dented the market sentiment. The crude oil market is looking forward to OPEC and non-OPEC producers’ meeting on May 25 in Vienna. A decision will be made about extending the supply cut.
At 7:20 AM EST, West Texas Intermediate crude oil futures contracts for June 2017 delivery were trading at $48.3 per barrel—a fall of ~1.6%. Brent crude futures contracts for July 2017 delivery rose ~2.7% and were trading at $51.40 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $34.69 after falling 1.5% on May 17.
After losing momentum on Wednesday, copper prices are weaker in the early hours on May 18. Prices are weaker amid increased inventory levels. Doubts about the successful execution of President Trump’s infrastructure plans are also weighing on copper prices. The PowerShares DB Base Metals ETF (DBB) rose 0.06%, while the SPDR S&P Metals & Mining ETF (XME) fell 1.7% on May 17. Gold (GLD) is stable, while silver (SLW) is weaker in the early hours. Gold is supported by political concerns in the US. Platinum and palladium are weaker in the early hours.