Crude oil
Crude oil futures quotations dropped the ninth straight session at Monday’s deals amid remaining fears about the US oil inventories surplus.
According to the trading results, January light sweet crude oil futures fell by 36 cents or by 0.5% to 69.51 USD per barrel having touched the lowest level for more than 2 months. January Brent crude oil futures rose by 1 cent to 71.89 USD per barrel.
The US oil inventories high levels are keeping the prices under downward pressure, at that, less market participants believe in that the world economy recovery will be enough to increase the oil consumption in short-term outlook and reduce this surplus of the inventories.
Under the high oil stocks pressure the oil prices tumbled to intraday low of 68.59 USD during Monday’s trading, but then, they bounced back the most part of lost positions due to stock indices growth support. Some investors began to inject funds in more risky assets amid reports that Abu Dhabi would give 10 billion USD to Dubai in order to help it to cope with debt problems. Dubai government will direct these funds to pay part of Dubai World conglomerate debts off.
Also, the euro weakening against the American dollar helped to rise oil prices, but, finally, the inventories fears pressure gained on the upper hand.
Gold
On Monday gold futures quotations went up slightly at COMEX as well as the stock indices and other metals prices amid provident recovery of investors interest in more risky assets. Unexpected reports that Abu Dhabi would provide Dubai monetary aid of 10 billion USD. February gold futures quotations ticked up by 3.90 USD to 1123.80 USD per ounce. On Monday, Dubai government reported that 4.1 billion USD of the provided for Abu Dhabi funds would be directed for debts payment on Islamic bonds, the time for repayment of which has been up on Monday. Reports about that edged the US dollar down versus other major currencies that had a positive effect on gold.
Best regards,
analyst: V. Donin.
