After pulling back on Thursday, crude oil prices maintained the weakness on Friday. In the early hours on Friday, crude oil traded below the opening prices and hovered at the lowest levels in more than a week.
Crude oil had been higher amid hopes of deep supply cuts and signs of increased global demand. However, the weaker-than-expected inventory report and signs of a production increase from OPEC dented the market sentiment and weighed on crude oil prices. According to recent reports, OPEC’s crude oil output rose by 90,000 barrels per day in July and reached 33 million barrels per day—the highest level in 2017. On the other hand, according to the U.S. Energy Information Administration, US crude oil inventories fell by 1.527 MMbbls (million barrels) last week, which is less than the market’s estimate of 2.957 MMbbls.
At 7:35 AM EST on August 4, West Texas Intermediate crude oil futures contracts for September 2017 delivery were trading at $48.76 per barrel—a fall of ~0.53%. Brent crude futures contracts for October 2017 delivery fell ~0.44% and were trading at $51.78 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $30.55 after falling 3.5% on August 3.
After gaining for three consecutive trading weeks and rising to two-year high price levels, copper lost momentum last week. The increased expectations of higher copper demand from China in 2H17 supported copper prices. The weaker dollar also supported copper prices. Gold (GLD) and silver (SLW) were stable in the early hours. The decreased risk appetite ahead of US jobs data and US political jitters supported gold prices in addition to the weaker dollar. The weak dollar supports the prices of dollar-denominated commodities like gold, copper, and silver. Platinum and palladium were stable in the early hours on August 4.