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Famous investment banks, as well as some of the largest energy companies are losing hope that crude oil prices could reach even $60 in 2016. We recall that last year a barrel of oil cost over $100. Today, the weak demand for "black gold", as well as an overabundance of it on the market sent benchmark to the $50 in the third quarter. Now this indicator is at its lowest stable level since the financial crisis.
In anticipation of expected comments before the release of results of the Fed on basis of meeting, the gold price ruched up. Yesterday, gold led trading at $1 166.55 per troy ounce compared to today's $1 171.50 in the morning. Futures for December rate rose by $5.80 to $1 171.60 per ounce. Investors' sentiments are quite pessimistic about the potential increase in interest rates today, but there is a possibility that the chief regulator of the United States will raise rates at the upcoming meeting in December this year. This will be a strike to gold, which does not bring interest income.
According to forecasts of major investors of the oil market, oil quotations in the United States in near future will fall at record rates. This is primarily due to the growth of fuel inventories, which literally wiped out the possible rise of quotations in the nearest future.
The second day in a row, we are witnessing the growth of oil prices. This morning futures for Brent increased in price by $0.37 to $48.45 per barrel, futures for WTI crude oil rose by $0.21 to $45.59. This is due to the good economic data and sharp jumps of shares after the performance of members of the ECB who have expressed about readiness to use new stimulus measures. Daniel Ang, an expert from Phillip Futures, said, that it's all about the numbers.
The growth of oil reserves in the US last week exceeded the expectations of experts, in consequence of that the price for "black gold" is reducing. This morning futures for Brent crude oil declined in price by $0.14 to $48.57 per barrel. The same was happened with the WTI - futures fell $0.26 to $46.03.
Beginning of today's trading session marked a decrease in value of gold futures, that recede from record highs of last four months. This contributes to uncertain situation regarding the timing of rate increases from the Fed.
Economic statistics of United States has "soothing" effect on the gold, price for the precious metal fell from its highest level for the last 3.5 months. In the morning, the gold tradeded at $1 179.60 per troy ounce on the background of the end trading session on Thursday - $1 182.70. US futures for December rate were down in price by $7.90 to $1 179.60 per ounce. The current market price is expected to rise by 1.7% next week.
Deflationary pressure in China allowed to slow down the increase in gold prices, now in the market there is a pullback from a maximum of three months levels. Also, such a situation could have a negative impact on expected increase of Fed interest rates and put them on a more long-range period.
Following the meeting of OPEC, Indonesia once again will be part of the cartel in December. This is even more reason to talk about curbing production volumes, believe experts and members of OPEC. Indonesia, which left OPEC in 2009, will increase the part of the cartel to 13 countries. It is also going to raise the overall oil production by 900,000 barrels per day to 32.5-million. Now oil production by OPEC countries significantly exceeded the approved quota of 30 million barrels per day.
Gold has risen in price to a maximum of the last three weeks. This is due to the fact that the Fed in its protocol has made it clear that it would not increase interest rates any time soon. In yesterday's trading session, the gold was trading near the mark of $1 138.56 per troy ounce, the current increase of the precious metal reached $1 154.01. Futures for December rate in the United States have increased in price by $ 9.50 to $1 153.80 per ounce. The total growth of the spot price for the week will be 1.3%.
