After posting gains for seven consecutive trading days, crude oil prices are slightly weaker in the early hours. In the early hours on Monday, crude oil prices are trading higher but with dented sentiment amid increased OPEC production.
The sentiment in the crude oil market improved last week amid signs of lower US oil output. According to data released by the U.S. Energy Information Administration, US crude oil production in April fell by 190,000 bpd (barrels per day) to 9.08 MMbpd (million barrels per day)—the first decline in US crude oil output in 2017. Also, the decline in US oil rig count data supported crude oil prices last week. According to data released by Baker Hughes, the US rig count fell from 758 to 756. However, the market is slightly weaker in the morning hours amid an increase in OPEC’s production. According to a Reuters survey, OPEC’s crude oil production rose by 280,000 bpd to 32.72 MMbpd.
At 7:30 AM EST, West Texas Intermediate crude oil futures contracts for August 2017 delivery were trading at $46.20 per barrel—a rise of ~0.35%. Brent crude futures contracts for September 2017 delivery rose ~0.23% and were trading at $48.88 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $31.92 after rising 0.69% on June 30.
After gaining for two consecutive trading weeks, copper prices are weaker in the early hours. Doubts about China’s economic outlook and monetary tightening weighed on copper prices in the early hours. Considering that China is the largest copper consumer, China’s economic outlook will impact copper’s demand and price trends.
The PowerShares DB Base Metals ETF (DBB) rose 0.8%, while the SPDR S&P Metals & Mining ETF (XME) fell 0.03% on June 30. After falling for four consecutive trading weeks, gold (GLD) and silver (SLW) prices are weaker in the early hours on Monday. Improved global sentiment amid strong purchasing managers’ index numbers and a stronger dollar weighed on gold prices. The firmer dollar weighs on dollar-denominated commodities like gold and silver. Platinum is weaker, while palladium is stable in the early hours.