Last week, crude oil closed at the lowest levels since November 14, 2016. Even though crude oil started this week on a stable note, prices lost strength as the week progressed amid supply concerns. On June 20, crude oil fell and closed the day at the lowest levels since November 14, 2016.
The crude oil market officially entered a bear market this week amid weaker market sentiment. A 20% fall in any financial instrument, like stocks and commodities, is considered a bear market. 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 rise in US crude oil drilling activity along with higher inventory levels also weighed on the market. Markets weakened more this week amid reports about the supply surge in Nigeria and Libya.
At 7:37 AM EST, West Texas Intermediate crude oil futures contracts for August 2017 delivery were trading at $43.48 per barrel—a fall of ~0.07%. Brent crude futures contracts for August 2017 delivery fell ~0.22% and were trading at $45.92 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $31.19 after falling 1.2% on June 20.
Copper started this week on a stronger note but lost strength as the day progressed. In the early hours on Wednesday, copper prices were stable. The rise in China’s Shanghai Composite Index amid improved market liquidity conditions and market sentiment supported copper prices. 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) fell 0.38%, while the SPDR S&P Metals & Mining ETF (XME) fell 1.3% on June 20. Gold (GLD) and silver (SLW) are stable in the early hours. Gold is trading at one-month low price levels amid the firmer dollar. Slight weakness in dollar along with political tension in European markets supported gold prices in the early hours. The weaker dollar supports dollar-denominated commodities like gold and silver. Platinum and palladium are stable in the early hours on June 21.