Crude oil lost momentum last week and consolidated at elevated levels. Crude oil started this week on a mixed note and traded with mixed sentiment. After regaining strength on Wednesday, crude oil started May 3 on a stable note and traded with strength above opening prices in the early hours.
The market sentiment on crude oil was strong on Thursday despite the build in inventory levels and increased US crude oil production. According to the U.S. Energy Information Administration, US crude oil inventories surged to 6.22 MMbbls (million barrels) last week, which is higher than the expected increase of 0.74 MMbbls. US crude oil production surged to 10.63 MMbbls last week. The US dollar’s pullback in the early hours on Thursday is supporting crude oil prices today.
At 6:20 AM EST on May 3, the West Texas Intermediate crude oil futures for June 2018 delivery were trading at $68.14 per barrel—a gain of 0.31%. The Brent crude oil futures for July 2018 delivery gained 0.07% and traded at $73.41 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $39.56 after gaining 0.92% on Wednesday.
After pulling back last week, copper started this week on a weaker note. However, copper regained strength in the middle of the week following the release of China’s stronger-than-expected manufacturing PMI (purchasing managers’ index) data. According to Markit, China’s Caixin manufacturing purchasing managers’ index rose to 51.1 in April, which is higher than the forecast of 50.9. The SPDR S&P Metals and Mining ETF (XME) gained 0.84% and closed at $34.78 on May 2.
Gold and silver are strong in the early hours on Thursday. The weakened global market risk appetite amid US-China trade talks and the lower US Dollar Index supported gold prices. The SPDR Gold Shares (GLD) declined 0.05% and closed at $123.65 on May 2. Platinum and palladium are strong in the early hours on Thursday.