Crude oil
On Thursday, crude oil futures declined following the stock indices fall after two intently observed economic indicators strengthened fears that the US economic recovery will be slow-paced.
According to the trading results at the New York Commodity Exchange, the December sweet crude oil futures ticked down by 2.12 USD or by 2.7% to 77.46 USD per barrel. Brent futures dropped in price by 1.83 USD or by 2.3% to 77.64 USD per barrel.
The Labor department said that the number of initial jobless claims did not change on the week ended November 14 and the research team Conference Board announced about the leading indicators index growth by 0.3% in October.
The initial jobless claims data was better than consensus and Conference Board index was worse than it was expected. At that, both figures could not give new signs of fast economic recovery, which the market participants were expecting. Crude oil prices and stock quotations, which were moving together most of the year slumped in the beginning of the session and remained further in the negative territory.
Part of the funds pulled from raw assets and stocks was put up in the US dollar that aggravated oil prices decrease as far as made this dollar- denominated raw commodity more expensive for the market participants who use other currencies.
One of the potential sources of the downward pressure on oil prices is the US stocks hike. In spite of improving economic conditions, which possible to see during several months, oil demand did not rise so significant as it was expected and stock levels are still high.
Gold
Gold futures quotations rose a little on Thursday, having bounced back positions lost amid the US dollar strengthening and risk tendency reduction.
The December gold futures quotations trading most actively increased by 70 cents to 1141.90 USD per ounce at the trading results at COMEX. The November gold futures grew up by 70 cents to 1141.40 USD.
During the deals, the futures won back lost positions when the dollar slid from the highs.
Totally, the US dollar weakening which was recently seen moderated. More stable dynamics of the US dollar slightly lowered the risk tendency as a result, the share rates slipped and investors liquidated gold positions, other raw commodities and oil.
Best regards,
Analyst: Vladimir Donin
