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 but regained strength as the week progressed. On July 21, crude oil opened the day lower and traded with weakness in the early hours.
The market sentiment is mixed this week amid supply concerns and high demand expectations for 2H17. With demand expectations offsetting oversupply concerns, oil prices moved higher this week. The better-than-expected inventory report also supported crude oil prices. According to data released by the U.S. Energy Information Administration, crude oil inventory levels fell by 4.727 MMbbls (million barrels) in the week ending on July 14—a bigger inventory level drop than the market’s anticipated fall of 3.214 MMbbls.
The market is cautious ahead of the OPEC and non-OPEC technical committee meeting scheduled for July 22. OPEC’s meeting is followed by a ministerial-level meeting on July 24. At 7:00 AM EST, West Texas Intermediate crude oil futures contracts for August 2017 delivery were trading at $46.66 per barrel—a fall of ~0.55%. Brent crude futures contracts for September 2017 delivery fell ~0.51% and were trading at $49.11 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $32.04 after falling 1.9% on July 20. The market is also waiting for the release of US oil rig count data by Baker Hughes. The data are scheduled to release at 1:00 PM EST today.
After pulling back from the highest levels since March 1 on Wednesday, copper prices regained strength on Thursday. On Friday, copper prices opened on a stronger note amid the weaker dollar and improved market sentiment in China.
The PowerShares DB Base Metals ETF (DBB) rose 0.06%, while the SPDR S&P Metals & Mining ETF (XME) rose 0.16% on July 20. Gold (GLD) and silver (SLW) are strong in the early hours. Gold prices gained strength after Fed Chair Janet Yellen’s dovish tone in her testimony last week. The dented market sentiment amid political concerns in the US is supporting gold prices along with the weaker dollar. The weaker dollar supports dollar-denominated commodities like gold and silver. Platinum and palladium are stable in the early hours.