The crude oil market broke a five-week losing streak last week amid increased volatility and geopolitical concerns. Crude oil started this week higher and traded with strength in the early hours.
Crude oil rose in the first three trading days last week. Refineries that were impacted by the Hurricane Harvey restarted their operations, which decreased demand concerns. However, the market lost strength amid warnings about Hurricane Irma. The market moved higher on Monday amid reports that Hurricane Irma weakened. According to data released by Baker Hughes on Friday, the US oil rig count fell by three to 756 rigs. The market is looking forward to the release of weekly crude oil inventory reports by the American Petroleum Institute and the U.S. Energy Information Administration. The reports will be released this week.
At 7:00 AM EST on September 11, the West Texas Intermediate crude oil futures contracts for October 2017 delivery were trading at $47.81 per barrel—a rise of ~0.71%. The Brent crude oil futures contracts for November 2017 delivery fell 0.35% and traded at $53.62 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $29.89 after falling 2.8% on September 8.
After pulling back last week and breaking an eight-week winning streak, copper started this week on a stronger note. Last week, copper fell on Friday amid profit-booking at fresh three-year high price levels. The increased demand outlook for copper along with supply disruptions pushed copper higher. Profit-booking paused as the global sentiment improved on Monday. Gold (GLD) and silver (SLW) are weak in the early hours on Monday. The market’s improved risk appetite along with the dollar’s rebound weighed on gold prices. The weaker dollar and the market’s weak risk appetite increased the demand for gold. A firm dollar weighs on the prices of dollar-denominated commodities like gold, silver, and copper. Platinum pulled back, while palladium is strong in the early hours on September 11.