After gaining for two consecutive trading weeks, crude oil moved higher on Monday and started the week on a stronger note. Carrying forward the strength, crude oil opened stronger on Tuesday and trading with strength at 3.5-year high levels in the early hours.
Crude oil is maintaining its strength this week amid the US’s decision to impose sanctions on Iran, which could impact the supply. The sentiment improved because all of the OPEC members except Iran curbed crude oil production. They curbed production as pledged in the supply cut agreement to bring balance to the oil market. The market is strong ahead of the American Petroleum Institute’s crude oil inventory scheduled to be released at 4:30 PM EST. Analysts expect the inventory levels to fall by 1.4 million barrels.
At 6:30 AM EST on May 15, the West Texas Intermediate crude oil futures for June delivery were trading at $71.39 per barrel—a gain of 0.61%. The Brent crude oil futures for July delivery gained 0.87% and traded at $78.91 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $41.79 after gaining 1.3% on Monday.
After gaining for two consecutive trading weeks, copper started this week on a mixed note and regained strength as the week progressed. On Tuesday, copper opened the day higher and traded at three-week high price levels. Increased inventory levels are limiting copper prices’ up move this week. The SPDR S&P Metals and Mining ETF (XME) declined 0.41% and closed at $36.78 on May 14.
Gold and silver are weak in the early hours on Tuesday. The recovery of the US Dollar Index this week along with increased speculations about a faster interest rate hike pace in 2018 weighed on gold prices in the early hours on Tuesday. The SPDR Gold Shares (GLD) declined 0.41% and closed at $124.49 on May 14. Platinum and palladium are weak in the early hours on May 15.