After gaining for three consecutive trading days, crude oil prices are weaker on July 13. Crude oil opened the day with dented sentiment and traded with weakness in the early hours.
The crude oil sentiment is weaker on Thursday due to supply concerns resurfacing in the market. Comments by the IEA (International Energy Agency) on supply conditions triggered the selling. According to the IEA, the demand for crude oil is strong but market rebalancing might be delayed. Not all of OPEC’s producers are in compliance with the supply cut agreement. Despite the drawdown in inventory levels, the market is weaker due to the oversupply situation. According to the U.S. Energy Information Administration, crude oil inventory levels fell by 7.56 MMbbls (million barrels) last week—better than the market’s forecast of 2.85 MMlbbs.
At 7:20 AM EST, West Texas Intermediate crude oil futures contracts for August 2017 delivery were trading at $45.14 per barrel—a fall of ~0.77%. Brent crude futures contracts for September 2017 delivery fell ~0.8% and were trading at $47.36 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $31.4 after falling 0.03% on July 12.
After gaining for two consecutive trading days, copper prices are stronger in the early hours on July 13. Copper opened higher amid improved sentiment in Chinese markets. Stronger export data improved China’s economic outlook. Since China is the largest copper consumer, China’s economic outlook will be impacted by copper’s demand and price trends.
The PowerShares DB Base Metals ETF (DBB) fell 0.06%, while the SPDR S&P Metals & Mining ETF (XME) fell 0.1% on July 12. Gold (GLD) and silver (SLW) are stable in the early hours. Gold prices rose after Fed Chair Janet Yellen’s dovish tone in her testimony on Wednesday. Platinum and palladium are stable in the early hours.