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Commodities Are Mixed in the Early Hours on July 19

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Jul. 19 2017, Published 8:08 a.m. ET

Crude oil

Crude oil regained strength last week amid expectations of improved global demand for oil in 2H17. Crude oil opened the week on a mixed note by pulling back on Monday. Oil opened higher on July 19 and traded with strength in the early hours.

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Market sentiment

The sentiment in the crude oil market is mixed on Wednesday amid expectations of higher demand and oversupply conditions in the market. According to data released by the API (American Petroleum Institute) on July 18, crude oil inventory levels rose by 1.628 MMbbls (million barrels) in the week ending on July 14. The market expected a fall in inventory levels. The API’s inventory report limited crude oil’s upward movement on Tuesday. The market is looking forward to the U.S. Energy Information Administration’s inventory report. The EIA’s report will be released at 10:30 AM EST. The market is expecting a draw-down in inventory levels by 3.214 MMbbls.

At 6:30 AM EST, West Texas Intermediate crude oil futures contracts for August 2017 delivery were trading at $46.53 per barrel—a rise of ~0.28%. Brent crude futures contracts for September 2017 delivery rose ~0.45% and were trading at $49.06 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $31.5 after falling 1.2% on July 18.

Metals

After gaining for three consecutive trading days, copper pulled back in the early hours on July 19. This week, copper rose to the highest levels since March 1 amid China’s stronger-than-expected economic data. However, prices pulled back on July 19 as momentum induced by China economic data cooled off.

The PowerShares DB Base Metals ETF (DBB) remained unchanged, while the SPDR S&P Metals & Mining ETF (XME) fell 0.51% on July 18. Gold (GLD) and silver (SLW) pulled back in the early hours. Gold prices gained strength after Fed Chair Janet Yellen’s dovish tone in her testimony last week. The weaker dollar is also supporting gold prices this week. Platinum and palladium are weaker in the early hours.

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