Crude oil regained strength last week and rose to two-month high price levels. Despite opening higher, crude oil traded with subdued strength in the early hours on July 31.
The sentiment in the crude oil market is strong amid a fall in inventories and expectations of demand growth in 2H17. On Monday, the market started on a positive note after reports about OPEC and non-OPEC members’ meeting in Abu Dhabi on August 7–8. The meeting’s agenda is to increase producers’ compliance with supply cuts that came into action at the beginning of the year. Increased bullish positions were observed in crude oil. According to reports, the long positions rose to three-month high levels. With producers’ actions on supply, decreasing inventories and increased optimism about demand indicate market tightening and support the market.
At 7:35 AM EST on July 31, West Texas Intermediate crude oil futures contracts for September 2017 delivery were trading at $49.56 per barrel—a fall of ~0.30%. Brent crude futures contracts for October 2017 delivery fell ~0.17% and were trading at $52.10 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $32.84 after falling 0.21% on July 28.
Copper gained for three consecutive trading weeks and rose to two-year high price levels. Increased optimism about China’s economic performance in 2H17 increased copper’s demand outlook. China’s healthy manufacturing PMI data pushed copper prices higher to fresh two-year high levels in the early hours on July 31. Gold (GLD) and silver (SLW) were stable in the early hours on July 31. The dented sentiment in the US dollar amid political concerns along with North Korean tensions supported gold prices at seven-week high price levels. Platinum and palladium are also strong in the early hours.