Commodities Are Strong Early on July 26

Crude oil

Crude oil rose on Wednesday and clocked the second consecutive daily gain. However, crude oil opened July 26 on a mixed note and was trading with mixed sentiment below opening prices in the early hours.

Commodities Are Strong Early on July 26

Market sentiment

Crude oil rose on Wednesday amid the release of the supporting US crude oil inventory report. According to the U.S. Energy Information Administration, US crude oil inventories declined by 6.147 MMbbls (million barrels) last week—more than the expected decline of 2.6 MMbbls. The news boosted crude oil prices on Wednesday. Crude oil prices are stable in the early hours on Thursday. Brent crude is rising on Thursday. Saudi Arabia suspended oil shipments through the Red Sea shipping lane of Bab al-Mandeb after Houthi rebels attacked two big oil tankers.

At 5:45 AM EST on July 26, the WTI crude oil futures contract for September delivery was trading at $69.25 per barrel—a drop of 0.07%. The Brent crude oil futures contract for September delivery gained 0.54% and was trading at $74.33 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $42.99 after gaining 0.70% on Wednesday.

Copper

Copper started this week on a mixed note by pulling back on Monday. However, copper regained strength and gained in the next two trading days. Carrying forward the strength, copper opened Thursday on a stable note and was trading with strength in the early hours. The stimulus by China’s government to counter the risks of the US-China trade war improved China’s economic outlook and supported copper prices.

The SPDR S&P Metals and Mining ETF (XME) rose 0.3% and closed at $37.25 on Wednesday.

Gold and silver are trading with weakness in the early hours on July 26. The improved global risk appetite after the US-EU trade deal is weighing on gold prices. The SPDR Gold Shares (GLD) gained 0.55% and closed at $116.68 on Wednesday. Platinum and palladium are stable in the early hours on July 26.