Crude oil regained strength last week and surged to three-year high price levels. However, crude oil opened lower on Monday and traded with weakness in the early hours.
Escalating tension in the Middle East added upward momentum to crude oil prices last week. The International Energy Agency’s bullish monthly report also added strength to crude oil prices. Crude oil lost strength on Monday since the attack on Syria might be single attack by western powers. The increased US oil rig count also weighed on crude oil prices. According to data released by Baker Hughes, the US Baker Hughes oil rig count increased to 815 from 808. The market is looking forward to crude oil inventories reports by the American Petroleum Institute and the U.S. Energy Information Administration scheduled to be released this week.
At 5:10 AM EST on April 16, the West Texas Intermediate crude oil futures for May 2018 delivery were trading at $66.28 per barrel—a drop of 1.7%. The Brent crude oil futures for June 2018 delivery declined 1.8% to $71.30 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $37.38 after declining 1.7% on Friday.
After gaining for three consecutive trading weeks, copper started Monday on a mixed note. The stable global economic outlook and weakness in the US Dollar Index in the early hours are supporting copper prices on Monday. The SPDR S&P Metals and Mining ETF (XME) gained 0.48% and closed at $35.55 on April 13.
Gold and silver are slightly weaker in the early hours on April 16. The attack on Syria supported gold prices. However, the upward momentum likely isn’t sustainable. The attack on Syria over the weekend might be a one-off attack. The SPDR Gold Shares (GLD) gained 0.66% and closed at $127.45 on Friday. Platinum is weak, while palladium is stable in the early hours on Monday.