Following a three-week gaining streak, crude oil started this week on a stronger note. Throughout the week, it rose to the highest levels traded since 2015. On Thursday, crude oil opened the day higher and traded at three-year high price levels.
The market sentiment on crude oil has been supporting the prices this week due to the improved demand outlook in 2018. Extending the supply cut agreement also kept the sentiment positive. On the other hand, speculations about increased US oil production limited the market’s rise. According to the EIA (U.S. Energy Information Administration), the US fell by 290,000 barrels per day to 9.5 million barrels per day. According to the EIA, the crude oil inventory levels fell by 4.948 MMbbls—more than the expected fall of 3.89 MMbbls.
At 4:40 AM EST on January 11, the West Texas Intermediate crude oil futures for February 2018 delivery were trading at $63.77 per barrel—a gain of 0.3%. The Brent crude oil futures for March 2018 delivery rose 0.23% to $69.36 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $38.48 after falling 0.59% on January 10.
After losing strength last week, copper started this week on a weaker note. Copper traded at two-week low price levels in the first two trading days but regained strength on Wednesday. The release of better-than-expected industrial and manufacturing reports supported copper prices.
Gold and silver are trading with weakness in the early hours on Thursday. On Wednesday, gold rebounded amid a fall in the US dollar. However, gold lost momentum in the early hours as the dollar started to regain strength. The firm dollar weighs on dollar-denominated commodities like copper, gold, and silver. Platinum and palladium are stable in the early hours on Thursday.