After declining in the first two trading days of this week, crude oil regained stability on Wednesday. On March 15, crude oil started the day on a stable note and traded above opening prices in the early hours.
The market sentiment was weak at the beginning of this week amid concerns about a strong trend in US oil production. However, the sentiment improved on Wednesday after Moody’s raised crude oil’s target price from $40–$60 to $45–$65. According to Moody’s, the impact of increasing US shale oil production on the price will be offset by strong global demand growth, OPEC’s supply cuts, and declining inventories. According to the EIA, US crude oil inventories increased by 5.02 MMbbls last week, which is higher than the expected build of 2.02 MMbbls.
At 5:30 AM EST on March 15, the West Texas Intermediate crude oil futures for April 2018 delivery were trading at $60.95 per barrel—a drop of 0.03%. The Brent crude oil futures for May 2018 delivery fell 0.17% to $64.78 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $34.53 after declining 0.38% on March 14.
Copper started this week on a weaker note but regained strength as the week progressed. The release of stronger-than-expected industrial production data along with weakness in the dollar supported copper prices until March 14. Copper opened higher on Thursday and traded with mixed sentiment in the early hours. The SPDR S&P Metals and Mining ETF (XME) fell 1.8% and closed at $36.36 on March 14.
Gold and silver are slightly weak in the early hours on March 15. The improved global risk appetite on Thursday, despite concerns about a trade war, is weighing on gold prices in the early hours. The SPDR Gold Shares (GLD) fell 0.06% and closed at $125.7 on Wednesday. Platinum is weak, while palladium is stable in the early hours on March 15.