After falling for five consecutive trading weeks, crude oil started this week on a stable note by rising on Monday. In the early hours on June 27, crude oil prices are trading with strength.
Despite the rebound in crude oil prices at the end of last week, the sentiment this week is still bearish amid the supply glut. Higher inventory levels and the rising trend in US shale oil are some of the major reasons behind crude oil’s decline. In the early hours today, weakness in the US dollar is supporting oil prices. The weaker dollar supports the prices of dollar-denominated commodities such as crude oil. The market is looking forward to the release of the American Petroleum Institute’s crude oil inventory data.
At 7:40 AM EST, West Texas Intermediate crude oil futures contracts for August 2017 delivery were trading at $43.84 per barrel—a rise of ~1.1%. Brent crude futures contracts for September 2017 delivery rose ~1.3% and were trading at $46.65 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $31.10 after rising 0.26% on June 26.
After regaining strength last week, copper prices pulled back on Monday. Weaker-than-expected US durable goods orders in May weighed on copper prices on Monday. However, copper opened higher on Tuesday and traded with strength amid China’s higher industrial profits. China’s industrial profits rose 16.7% in May—compared to last year. The market expected industrial profits to slow down.
The PowerShares DB Base Metals ETF (DBB) rose 0.25%, while the SPDR S&P Metals & Mining ETF (XME) remained unchanged on Monday. After pulling back on June 26 amid the firmer dollar and improved global sentiment, gold (GLD) and silver (SLW) regained strength on Tuesday. Weakness in the dollar along with mixed global sentiment supported gold prices. The weaker dollar supports dollar-denominated commodities like gold and silver. Platinum is stable, while palladium is weaker in the early hours.