Pre-Market Report: Global Markets Are Weak amid the Tech Sell-Off PART 7 OF 7
After falling last week, crude oil regained strength this week. It started on a stronger note by gaining on Monday. Crude oil rose in the first four trading days this week. Crude oil opened with strength on Friday and traded at fresh two-month high price levels in the early hours.
This week, the market opened amid more buying pressure and deeper production cut expectations. The market was boosted by comments from Khalid al-Falih—Saudi Arabia’s energy minister. He discussed cutting Saudi Arabia’s crude exports in August to 6.6 million barrels per day. The buying pressure in crude oil increased mid-week after the better-than-expected inventory report. According to U.S. Energy Information Administration data on July 26, crude oil inventory levels fell by 7.208 MMbbls (million barrels) in the last week—better than the market’s expectation of a fall in crude oil stock levels by 2.629 MMbbls and the fourth straight weekly fall in inventory levels.
The market is looking forward to US oil rig count data by Baker Hughes at 1:00 PM EST today. At 7:05 AM EST, West Texas Intermediate crude oil futures contracts for September 2017 delivery were trading at $49.05 per barrel—a gain of ~0.02%. Brent crude futures contracts for September 2017 delivery rose ~0.33% and were trading at $51.66 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $32.91 after rising 1.0% on July 27.
After rising for two consecutive trading weeks, copper started stronger by gaining on Monday. This week, copper rose to two-year high price levels amid reports about a possible ban on China’s scrap imports by the end of 2018. In the early hours on Friday, copper is trading with mixed sentiment. Gold (GLD) and silver (SLW) are slightly weaker early on Friday. Gold is looking forward to the release of US second quarter GDP data. Platinum and palladium are also mixed in the early hours.