Commodities are weaker in the early hours on Monday. Crude oil lost momentum last week as oversupply concerns resurfaced in the market. In the early hours on Monday, crude oil prices are weaker.
Concerns about signs of increased production by the US and OPEC producers are weighing on crude oil prices today. The focus shifted to OPEC and non-OPEC’s technical committee meeting in Abu Dhabi. The meeting will focus on improving producers’ compliance with the supply cut deal. According to recent reports, OPEC’s crude oil output rose by 90,000 barrels per day in July and reached 33 million bpd—the highest level in 2017. Higher output dented the market sentiment and raised concerns about crude oil’s oversupply situation. The market is also looking forward to the release of inventory reports that are scheduled this week.
At 7:35 AM EST on August 7, West Texas Intermediate crude oil futures contracts for September 2017 delivery were trading at $48.95 per barrel—a fall of ~1.27%. Brent crude futures contracts for October 2017 delivery fell ~1.32% and were trading at $51.73 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $31.27 after rising 2.4% on August 4.
After gaining for four consecutive trading weeks and rising to two-year high price levels, copper is mixed on Monday. Increased expectations of higher demand for copper from China in 2H17 supported copper prices. Gold (GLD) and silver (SLW) are weak in the early hours. The increased risk appetite after the US jobs data weighed on gold prices. Platinum and palladium are also weak in early hours on Monday.