Crude oil.
Crude oil futures quotations dropped on Monday for the third consecutive session, losing the most of earned positions during last week on the back of the US dollar decrease.
According to the trading results of the New York Commodity Exchange the December sweet crude oil futures ticked down by 1.82 USD or by 2.3% to 78.68 USD per barrel. Brent oil futures fell in price by 1.66 dollars or by 2.1% to 77.26 dollars per barrel.
Investors pulled their funds from oil market and bought the US dollar again, thereby changed their tactics to opposite, after the fact that the tumbled dollar caused the growth of the oil futures quotations to an annual high above 80 dollars per barrel last week.
Outflow of funds from oil market and other commodity products, in all appearance, was provoked by the fall of financial companies shares quotations. Confidence in the leading banks was shattered by Wall Street Journal article, according to which it would be quite difficult for the Bank of America Corp. to get back federal aid.
In addition in short-term outlook the world demand and supply situation will unlikely support oil prices.
In the USA, which is the major country of oil consumption, the refinery’s plants restrain the production of gasoline and distillate products, including diesel fuel and reduced fuel oil, in order to shrink the overstock of both kinds of fuel.
Gold.
Gold futures quotations declined on Monday as the US dollar growth made the market participants to fix profit.
According to the trading results of COMEX the December gold futures quotations dropped by 13.60 dollars to 1042.80 dollars per ounce.
Yellow metal prices turned out to be under the pressure on the back of the dollar\'s growth. Gold prices often move in backward direction with American currency, because this metal is listed as hedging tool from risks connected with the dollar and in a more comprehensive sense as an alternative currency. Gold purchases by speculative market participants, pushing prices to record highs, first of all was provoked by lately observed dollar\'s weakness.
Regards,
Analyst: Vladimir Donin.
