After pulling back last week amid supply concerns, crude oil started this week on a weaker note. Crude oil is trading with weakness in the early hours on Monday.
Signs of increased supply in the US and other major oil producing nations weighed on crude oil prices last week. Losses deepened at the end of last week after the release of disappointing oil rig count data. According to data released by Baker Hughes, the US oil rig count rose from 756 to 763. Crude oil prices are trading lower despite the announcement of OPEC’s plans to widen supply cuts. OPEC plans to include Nigeria and Libya in the supply cut agreement. The rebound in Nigeria and Libya’s supply is one of the reasons behind recent weakness in crude oil.
At 6:40 AM EST, West Texas Intermediate crude oil futures contracts for August 2017 delivery were trading at $43.88 per barrel—a fall of ~0.79%. Brent crude futures contracts for September 2017 delivery fell ~0.75% and were trading at $46.35 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $30.66 after falling 0.42% on July 7.
After breaking the two-week long winning streak and pulling back last week, copper opened Monday with weaker momentum. Even though upbeat US jobs data improved copper’s strength, the rise in inventory levels is weighing on copper. China’s weaker-than-expected inflation data also weighed on copper prices.
The PowerShares DB Base Metals ETF (DBB) fell 0.12%, while the SPDR S&P Metals & Mining ETF (XME) fell 0.91% on July 7. Gold (GLD) and silver (SLW) are weaker in the early hours on Friday. Improved sentiment amid upbeat US data is weighing on gold prices. Platinum is weaker and palladium is stable in the early hours.