Commodities Are Mixed in the Early Hours on March 13
After a brief rebound last week, crude oil declined on Monday and started this week on a weaker note. On Tuesday, crude oil opened the day on a stable note and traded with strength above open prices in the early hours.
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US crude oil production
The market sentiment on crude oil weakened in the middle of last week after the International Energy Agency reported a surge in weekly US oil production to record levels. However, the sentiment improved at the end of last week. Baker Hughes reported a drop in the US oil rig count. Crude oil resumed the weakness after the U.S. Energy Information Administration reported on Monday that the production from major US shale players is expected to increase production in April to 6.95 million barrels per day. The market is looking forward to the release of the American Petroleum Institute’s weekly US crude oil inventory report. The report is scheduled to be released at 4:30 PM EST today.
At 5:20 AM EST on March 13, the West Texas Intermediate crude oil futures for April 2018 delivery were trading at $61.51 per barrel—a gain of 0.24%. The Brent crude oil futures for May 2018 delivery rose 0.25% to $65.11 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $34.80 after gaining 0.09% on March 12.
After trading last week on a mixed note, copper started this week on a weaker note. Carrying forward the weakness, copper is trading below opening prices in the early hours on March 13. China’s lower copper imports in February weakened the sentiment on copper. The SPDR S&P Metals and Mining ETF (XME) rose 1.1% and closed at $37.14 on March 12.
Gold and silver are weak in the early hours on Tuesday. Gold prices are weak in the early hours as the market awaits the release of US inflation data. The dollar’s recovery from Monday’s fall also weighed on gold prices. The firm dollar weighs on the prices of dollar-denominated commodities like copper, gold, and silver. The SPDR Gold Shares (GLD) gained 0.01% and closed at $125.55 on Monday. Platinum is mixed, while palladium is stable in the early hours on March 13.