After gaining for three consecutive trading weeks, crude oil started this week on a stronger note by surging to 3.5-year high price levels. Carrying forward the strength, crude oil opened higher on May 22 and consolidated at elevated levels in the early hours.
The market sentiment on crude oil improved this week amid increased concerns about supply disruptions. The prices are supported by the improved global economic stability, strong crude oil demand forecast, and OPEC led supply-cuts. Increased concerns about Venezuela’s crude oil supply are supporting crude oil prices in the early hours on May 22. The oil prices strengthened following fresh US sanctions on buying Venezuelan debt following election day. Fresh sanctions are expected to decrease Venezuela’s oil production, which is already at the lowest levels in a decade. The market is looking forward to the release of weekly US crude oil inventory data by the American Petroleum Institute. The data are scheduled to be released at 4:30 PM EST.
At 5:55 AM EST on May 22, the West Texas Intermediate crude oil futures for July delivery were trading at $72.58 per barrel—a gain of 0.32%. The Brent crude oil futures for July delivery gained 0.48% and traded at $79.60 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $44.22 after gaining 2.5% on Monday.
Copper started this week on a stronger note following a brief pullback last week. The improved market sentiment amid decreased concerns about the US-China trade war supported copper prices on Monday. Carrying forward the strength, copper started May 22 on a stronger note and traded at four-week high price levels in the early hours. The SPDR S&P Metals and Mining ETF (XME) declined 0.58% and closed at $37.58 on Monday.
Gold and silver are strong in the early hours on May 22. The US Dollar Index pulled back amid profit-booking, which helped gold rebound from five-month low price levels. The SPDR Gold Shares (GLD) gained 0.06% and closed at $122.48 on Monday. Platinum and palladium are strong in the early hours on May 22.