Oil
Quotes of oil futures did not change by the end of Wednesday deals. Petrol demand increase was considered by the market participants as a lucky accident amid rising concerns regarding the economy.
By the end of the New York trading session the October futures quotes on sweet crude oil closed at 68,05 dollars per barrel. Brent oil futures quotes lowered by 10 cents to 67,63 dollars per barrel.
Firstly, the oil prices ticked up after the US Department of Energy data signaled about the oil reserves reduction in the USA during the week on August, 22-28 by 400 000 barrels, also about more significant petrol reserves cutting than it was expected. This fuel reserves fell by 3 mln.barrels. The oil and petrol resources were increasing during this year, as the demand was weak due to the economic downturn, though, the reserves began contracting in August.
However, the demand remains low across the board, even despite that the gasoline demand has strengthened for the last week. Moreover, as a rule, the Americans are beginning to use their vehicles less, because of Labor Day, that decreases the importance of gasoline for the oil prices.
Some speculative participants may, possibly, leave the market after Deutsche Bank AG announced about their intention to liquidate the papers of PowerShares DB Crude Oil Double Long in the amount of 425 bln.dollars. This and other similar funds open long positions in the oil market, i.e. play for a price upturn. These positions absence can deprive the price of essential support, although, the funds are asserting that their presence in the market doesn\'t impact the prices.
Gold
The gold futures reached the highest point for almost three months during the Wednesday deals, as the US dollar ticked down, the prices overcame crutial technical levels at the graphs and the market participants were buying the metal with the purpose of protecting their investments amid the economic uncertainty and concerns regarding the stock markets.
The December futures quotes on gold rose by 22 dollars at COMEX late session or more than by 2,3% to 978,50 dollars for ounce. During the deals the prices touched the high at 981,40 dollars, this set the maximum since June, 5.
The gold price surge was also promted by the share drop, which took place on Tuesday. The market participants were buying gold as a safe asset taking into account the last year decline in the stock markets.
The support was gained from gold purchases due to economic fears caused by the employment data. The price advance instigated buy orders, set up in advance around the range of 960-970 dollars.
Regards,
Analyst: Vladimir Donin
