After pulling back last week and breaking a four-week gaining streak, crude oil started this week on a stronger note. Crude oil opened higher on January 23 and traded above opening prices in the early hours.
The market sentiment was mixed last week on crude oil amid concerns about an increase in US oil production. The sentiment improved this week amid support from major oil producers. They will hold back production and help balance the market. The upward revision of global economic growth by the International Monetary Fund also improved crude oil’s demand and boosted the prices. The market is looking forward to the release of the API’s weekly crude oil stock data at 4:35 PM EST today.
At 5:55 AM EST on January 23, the West Texas Intermediate crude oil futures for March 2018 delivery were trading at $63.88 per barrel—a gain of 0.49%. The Brent crude oil futures for March 2018 delivery rose 0.41% to $69.31 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $39.69 after gaining 2.5% on January 22.
Following a three-week losing streak, copper started this week on a stronger note. Weakness in the US dollar along with improved optimism about China’s economy supported copper prices on Monday. However, copper lost strength on Tuesday amid increased inventory levels and a recovery in the dollar. The SPDR S&P Metals and Mining ETF (XME) gained 0.7% and closed at $38.89 on Monday.
Gold (GLD) and silver (SLW) are stable in the early hours on Tuesday. Weakness in the US Dollar Index at three-year low price levels supports gold prices. The improved global risk appetite amid the end of the US government shutdown limited gold’s upward movement. The weaker dollar supports the prices of dollar-denominated commodities like copper, gold, and silver. Platinum is stable, while palladium is weak in the early hours on January 23.