After declining for two consecutive trading days, crude oil opened higher on Wednesday and rallied amid the improved market sentiment. Carrying forward the strength, crude oil opened slightly higher on May 31. Crude oil was trading with mixed sentiment in the early hours.
Crude oil has been falling since last week amid the possibility of OPEC increasing the crude oil production to counter supply concerns in Iran and Venezuela. Crude oil broke the seven-day gaining streak and surged on Wednesday amid reports that OPEC will stick to the supply cut agreement until the end of 2018. Crude oil lost momentum in the early hours on Thursday and started to pull back amid a surprise build in US crude oil inventories reported by the API (American Petroleum Institute). According to the API, the US API weekly crude oil stock increased by 1.001 MMbbls (million barrels) last week, while the market expected the inventory levels to fall by 1.3 MMbbls. The market is looking forward to the release of the US crude oil inventory report by the U.S. Energy Information Administration. The report is scheduled to be released at 11:00 AM EST today.
At 5:45 AM EST on May 31, the WTI crude oil futures for July delivery were trading at $67.69 per barrel—a drop of 0.79%. The Brent crude oil futures for August delivery declined 0.64% and were trading at $77.22 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $42.58 after declining 3.7% on Wednesday.
After a brief rebound on Wednesday, copper opened higher on May 31. Copper was trading with mixed sentiment in the early hours. The release of China’s stronger-than-expected manufacturing PMI data in May pushed copper higher on Wednesday. Concerns about US import tariffs on China are holding back copper prices. The SPDR S&P Metals and Mining ETF (XME) gained 2.1% and closed at $37.52 on Wednesday.
Gold and silver were stable in the early hours on May 31. The US Dollar Index pulled back ahead of US data releases, which supported gold prices in the early hours. The SPDR Gold Shares (GLD) gained 0.15% and closed at $123.37 on Wednesday. Platinum and palladium were trading with strength in the early hours on May 31.