Crude Oil
The 8-days oil futures quotations growth ended on Tuesday, because the US real estate market’s weak data shook the market participants’ trust in fast economy recovery.
According to the trading results of the New York Commodity Exchange, the November sweet crude oil futures decreased by 52 cents, or 0,7 %, to 79,09 dollars per barrel. The November futures validity period expired on Tuesday, and December futures have traded most actively and have fallen by 84 cents, or 1,1 %, to 79,12 dollars per barrel. The Brent oil futures slipped by 53 cents or 0,7 %, to 77,24 dollars per barrel.
The US Ministry of Trade report published on Tuesday, testifying to less considerable, than it was expected, growth of housing starts in September, forced the market participants to review the situation. The part of means, took out from oil, was directed to the US dollar again which moved upward from 14-month minimum against the euro. This growth, although slight, has caused descending oil prices correction.
Meanwhile, the oil prices are still below the annual maximum. Stocks and the dollar can theoretically push the oil prices upward as the investors’ belief in the gradual growth of economic amplifies. However, according to the analysts, the rise in oil prices, based only on the optimism, has a limit.
Also the oil market is still waiting for proofs that the economy recovery will lead to disappearance of the excess supply which caused growth of the oil and fuel reserves this year.
Gold
Gold futures increased on Tuesday, having continued the consolidation within the limits of a range observed last week. In the beginning of trading the gold prices had grown, however then they lost part of the won positions as the US dollar showed strengthening signs.
According to COMEX trading results, the December gold futures quotations ticked up by 50 cents to 1058,60 dollars per ounce against the maximum of 1069 dollars.
Quotations of the gold futures have opened with increase after the dollar easing observed earlier. However, then during the Tuesday trading session the dollar has reversed. The dollar growth was caused by the closing of short positions by traders which sold the American currency earlier. At the same time the gold profit fixing was observed. In other words, traders who bought gold earlier under the lower prices began to sell it.
Regards,
Analyst: Vladimir Donin
