After entering this week on a stable note, crude oil prices fell as the week progressed amid supply concerns. On June 21, crude oil fell to the lowest levels since August 12, 2016. Crude oil regained some strength on Thursday. Crude oil is stable in the early hours on Friday.
The crude oil market lost strength after oil producers’ official meeting to control the supply glut. Failure to deepen supply cuts in the supply cut extension agreement dented the market sentiment. The U.S. Energy Information Administration reported a drop in oil’s inventory levels but it didn’t trigger any buying in oil. Crude oil prices stayed weak most of this week amid signs of increased production in Nigeria. On Friday, oil is stable amid comments from major OPEC producers to stick to production cuts.
At 7:45 AM EST, West Texas Intermediate crude oil futures contracts for August 2017 delivery were trading at $42.87 per barrel—a gain of ~0.28%. Brent crude futures contracts for August 2017 delivery rose ~0.27% and were trading at $45.34 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $30.21 after rising 0.13% on June 22.
Copper started this week on a stronger note but lost strength as the week progressed. After losing some strength on Tuesday, copper regained strength and rose on Wednesday due to tighter copper supply conditions. On Friday, copper prices rose amid the weaker dollar and strength in Chinese markets. Considering that China is the largest copper consumer, economic conditions in China impact copper’s demand and price trends.
The PowerShares DB Base Metals ETF (DBB) rose 0.51%, while the SPDR S&P Metals & Mining ETF (XME) rose 1.7% on June 22. Gold (GLD) and silver (SLW) are stronger in the early hours. Gold is stronger amid the pullback in the dollar and dented global sentiment. The weaker dollar supports dollar-denominated commodities like gold and silver. Platinum and palladium are stable in the early hours on June 23.