Analytics, News, and Forecasts for CFD Markets: raw news — 17-10-2016.

Oil prices are falling, as investors are hesitating on the background of US oil rigs growths and the assumption that the positive from pre OPEC production cuts have already been priced in.

Morgan Stanley's analysts believes that even this factor (production cut) alone should be enough to ensure that oil prices remain in the range of 48-53 dollars per barrel before the official OPEC meeting. The members of the cartel will meet on November 30 in Vienna.

Net long positions rise confirms that traders expect a rise in prices, Commerzbank analysts said. At the same time, they note that the situation can change quickly.

"The subsequent behavior of investors will largely depend on whether OPEC can maintain market confidence in its program of production cut".

Some observers believe that in the short term, the oil market will be supported by the OPEC meeting, but in the medium term, prices will depend on how much production will be reduced.

The cost of the November futures for US light crude oil WTI (Light Sweet Crude Oil) fell to 49.47 dollars per barrel on the New York Mercantile Exchange.

November futures price for North Sea petroleum mix of mark Brent fell to 51.16 dollars a barrel on the London Stock Exchange ICE Futures Europe.

Gold price rose moderately as a result of the weakening dollar. The dollar index has recently lost about 0.1%. A weaker dollar makes gold more attractive for holders of other currencies.

Pressure on the dollar had statistical data on the US. The research results, published by the Federal Reserve Bank of New York showed that the region's manufacturing index dropped significantly in October, contrary to the predicted improvement. According to the data, the manufacturing index this month fell to -6.8 points compared to -1.99 points in September. Economists had expected the index to increase 1.5 points.

Speculators, however, are beginning to look more pessimistic on the prospects for gold. Hedge funds reduced last week their net long position in gold to 153,776.

The reduction of long positions occurred amid increasing uncertainty about the US presidential election and the policy of the Federal Reserve, according to ING analysts.

The cost of December futures for gold on COMEX rose to $ 1258.1 per ounce.

• oil prices good for current projects, too low for future

• sees positive trend in oil talks

• Saudi and Iran seem more flexible in talks

This morning, the New York futures for Brent have fallen 0.52% to $ 50.08 and crude oil futures WTI have down 0.42% to $ 51.72 per barrel. Thus, the black gold is traded in the red zone on the background of the growing number of drilling rigs in the United States, and a strong dollar.

According to Baker Hughes the number of active oil rigs increased by four units.

The dollar's rise to a seven-month high against a basket of major currencies due to expectations of a Fed hike this year, also put pressure on the oil quotations.

OPEC will meet on November 30 to discuss the reduction of oil production. The participants of the cartel hope that States that are not members of the organization, in particular Russia, to join a potential agreement on production cuts.