After falling on Wednesday, crude oil prices rebounded on July 6. Crude oil opened higher on Thursday and traded with stability in the early hours.
Crude oil rebounded on July 6 amid a higher-than-expected draw from inventory levels. According to data released by the American Petroleum Institute, crude oil inventory levels fell by 5.764 MMbbls (million barrels) in the week ending June 30. It’s a bigger decline in inventory levels than the expected decline by 1.6 MMbbls. Despite the draw in inventory levels, the sentiment in the crude oil market is still weak. Crude oil lost strength this week after Bloomberg reported about Russia’s deepening opposition towards proposed supply cuts. The market is looking forward to the release of crude oil inventory data by the U.S. Energy Information Administration. The data are scheduled to be released at 11:00 AM EST today.
At 7:25 AM EST, West Texas Intermediate crude oil futures contracts for August 2017 delivery were trading at $45.73 per barrel—a gain of ~1.3%. Brent crude futures contracts for September 2017 delivery rose ~1.4% and were trading at $45.74 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $31.5 after falling 3.4% on July 5.
After trading with weakness for three consecutive trading days, copper prices regained strength on July 6. Copper opened higher on Thursday and traded with strength in the early hours. The possible strike at two of Antofagasta’s copper mines in Chile and measures by China’s government to provide economic stability in 1H17 are supporting copper prices.
After falling to two-month low price levels on Wednesday, gold regained strength and opened higher on July 6. The lower global risk appetite and the weaker dollar are supporting gold. The weaker dollar supports dollar-denominated commodities like gold and silver. Platinum and palladium are stable in the early hours.