Quotes of oil declined in today's trading, falling below $ 40 a barrel and headed for its first weekly drop in the past month. Pressure on prices have a record-high oil reserves in the US, the weakening of stock markets and a stronger dollar.
Tuesday oil futures fell by about 6 percent, which is the biggest two-day decline since mid-February. Analysts believe that the oil rally, which lasted for the past five weeks, gradually coming to an end. "The stabilization of oil prices may be a temporary phenomenon in the beginning of 2016, and prices are already in the coming months to resume the fall, repeating the scenario of 2015", - said Deutsche Bank analyst Michael Huseh. - As long as the oil of oil prices dynamics repeats last year: lows were once again shown, in January, and in the past since two months, the price per barrel increased by more than 50%. "
Yesterday the US Department of Energy reported that crude oil inventories rose week of March 12-18 by 9.4 million barrels to 532.5 million barrels, a new record high for this time of year. Analysts had expected an increase to 3.5 mln. Barrels. Oil reserves in Cushing terminal fell by 1.3 million barrels to 66.2 million barrels. Gasoline inventories fell by 4.6 million barrels to 245.1 million barrels. Analysts had expected inventories to fall by 2 million barrels. The utilization of refining capacity fell by 0.6% to 88.4%. Analysts have suggested that the rate will fall to 0.1%. Meanwhile, oil production in the US in the week of March 12-18, dropped to 9.038 million. Barrels per day from 9.068 million. Barrels per day the previous week.
One of the leaders of the International Energy Agency said the deal between several OPEC producers and Russia concerning the production freeze is likely to be "meaningless" because only Saudi Arabia has the ability to increase production.
In the course of trading is also affected by Baker Hughes to publish data on the number of idle rigs in the United States, which will be released later today. Recall, according to the results ended March 18 working weeks, the number of drilling rigs in the US fell by 4 points, or 0.83%, and amounted to 476 units. In annual terms, a decline of 593 units or 55.47%. The number of oil rigs increased by one unit, or 0.26%, to 387 units. Thus, the tendency to reduce the index, which lasted for the past three months, ended. The number of gas-producing plants has decreased by 5 units, or 5.32%, and amounted to 89 units
WTI for delivery in May fell to $39.25 a barrel. Brent for April fell to $39.90 a barrel.
Gold prices stabilized today after falling significantly yesterday. In the course of trading continues to influence the strengthening of the US dollar and expectations of an early Fed rate increase.
"The dollar is still the most important driver for gold," - said Georgette Boele, strategist at ABN Amro Group NV. She expects that the precious metal will rise to $ 1370 by the end of the year. "However, short-term sentiment slightly negative for the metal", - added Boulay. Despite the recent losses, with the beginning of the year yellow metal rose by almost 14%, as investors seek refuge in conditions of instability in financial markets and concerns about the global economic downturn.
This week, a number of comments by the Fed indicated that a rate hike could happen in the next few months. Rising interest rates usually puts pressure on gold, which does not interest, and it is difficult to compete with income instruments when borrowing costs rise. Currently, the interest rate futures on the Fed show that there is a 75 percent chance of a rate hike by the end of the year. It is worth emphasizing the month before the likelihood of such a step was 42 percent. "In February, many feared softer Fed's position, but now economists believe that there will be two rate increase, and this may have a downward pressure on the gold price," - said strategist at ING Bank Hamza Khan.
Little support for gold had weak US data. The US Commerce Department said that orders for manufactured durable goods decreased overall in the last month against the backdrop of weak global growth, as low oil prices and financial instability continue to put pressure on companies costs. New orders for durable goods fell by a seasonally adjusted 2.8% in February compared with the previous month. Economists had expected overall orders to fall by 2.9% in February compared with the previous month. Falling new orders for all durable goods followed a growth in January, has suggested a glimmer of hope to the troubled manufacturing sector. Revised January growth was lowered to increase by 4.2% compared with the earlier estimate of growth by 4.7%.
In addition, reports show that investors continue to buy the metal through exchange-traded funds. Gold reserves in the largest gold ETF-fund SPDR Gold Trust rose yesterday to 1768.1 tonnes, the highest level since March 2014.
April futures price of gold on COMEX today fell to $ 1220.50 per ounce.
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