After falling for three consecutive trading weeks, crude oil regained strength and started this week on a stable note. On June 13, crude oil opened higher and was stable in the early hours.
The crude oil market sentiment improved on Tuesday amid signs of lower US crude oil inventory levels. The market regained momentum after the announcement of Saudi Arabia’s exports. Saudi Arabia, the world’s top crude oil exporter, announced that it would cut exports significantly in July. Saudi Arabia is one of the major supporters of the supply cut agreement. The agreement was extended until March 2018 to support falling crude oil prices. The US output and oil rigs are increasing. According to the recent report released by Baker Hughes, the US oil rig count rose to 741.
At 7:00 AM EST, West Texas Intermediate crude oil futures contracts for July 2017 delivery were trading at $46.20 per barrel—a gain of ~0.3%. Brent crude futures contracts for August 2017 delivery rose ~0.27% and were trading at $48.42 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $32.82 after rising 0.64% on June 12.
After gaining for two consecutive trading weeks, copper lost momentum and started the week on a weaker note. Copper is trading with weakness ahead of the Fed’s interest rate meeting. In the early hours on Tuesday, copper prices are weaker and trading below $2.6. The rise in Shanghai copper inventories along with concerns about the strength of China’s economy weighed on copper prices. The PowerShares DB Base Metals ETF (DBB) fell 1.3%, while the SPDR S&P Metals & Mining ETF (XME) rose 0.37% on June 12.
Gold (GLD) and silver (SLW) are trading with weakness ahead of the Fed’s interest rate meeting. After opening the week on a weaker note, gold opened lower on Tuesday and traded with weakness in the early hours. The market expects an interest rate hike by the Fed on June 14. Platinum is stable, while palladium is weaker in the early hours on Tuesday.