After gaining for two weeks, crude oil started this week on a stronger note and gained in all of the trading days so far this week. Crude oil closed Thursday almost flat and opened higher on Friday. In the early hours on May 18, crude oil is consolidating at the highest levels traded since November 2011.
Supply fears amid geopolitical tensions, like looming US sanctions on Iran, pushed crude oil prices higher. However, supply fears subsided in the afternoon session on Thursday after Saudi Arabia and the United Arab Emirates’ oil ministers commented that they would ensure a steady supply of crude oil despite geopolitical tensions. As a result, there was less upward momentum in crude oil which pulled back the prices. The market is looking forward to the release of Baker Hughes’s oil rig count data. The data are scheduled to be released at 1:00 PM EST today.
At 5:40 AM EST on May 18, the West Texas Intermediate crude oil futures for June delivery were trading at $71.70 per barrel—a gain of 0.29%. The Brent crude oil futures for July delivery gained 0.58% and traded at $79.76 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $43.52 after gaining 3.1% on Thursday.
After gaining for two days, copper opened Friday on a mixed note and traded with weakness in the early hours. The impact of the strong dollar and increased concerns about China’s copper demand are weighing on copper prices on Friday. The SPDR S&P Metals and Mining ETF (XME) gained 0.96% and closed at $37.95 on May 17.
Gold and silver are weak in the early hours on Friday. The US Dollar Index’s strong performance is weighing on gold prices in the early hours. The SPDR Gold Shares (GLD) gained 0.06% and closed at $122.36 on May 17. Platinum and palladium are weak in the early hours on May 18.