Crude oil prices Tuesday, November 7 stayed stable above opening prices as market sentiments improved just as gold and silver remained weak in the early hours of the day.
The West Texas Intermediate crude oil futures contracts for December 2017 delivery traded at $ 57.23 per barrel midday—a fall of 0.21 percent, while the Brent crude oil futures contracts for January 2018 delivery fell 0.47 percent and traded at $ 63.97 per barrel. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) closed at $36.83 after rising 4.2 percent on November 6.
Market analysts and traders were very optimistic that prices would close higher at the end of the day as the market awaits the release of the American Petroleum Institute’s weekly crude oil inventory report Tuesday.
Crude oil regained strength in September amid crude oil producers’ increased compliance to OPEC’s supply cut agreement. The market gained momentum in October amid signs of market balancing and increased expectations of a supply cut agreement extension by OPEC.
On Monday, the market rose amid a political shakeup in Saudi Arabia. However, the rise in crude oil can’t only be justified by Saudi Arabia. Nigeria’s oil minister commented that Nigeria might be ready to contribute to OPEC’s supply cuts.
On the other hand, gold and silver were weak in the early hours on Tuesday. The improved global sentiment, amid strength in Asian markets and the strong dollar, is weighing on gold prices. A stronger dollar weighs on dollar-denominated commodities like copper, gold, and silver. Platinum and palladium are also weak in the early hours of the day.
After regaining some strength last week, copper maintained the strength this week by rising to ten-day high price levels on Monday. It however pulled back on Tuesday amid strong dollar.