05.05.2015 - OPEC increased oil production
The price of gold rose on fixing of short positions. Earlier, the Fed said that the slowdown in US GDP growth was due to temporary factors that increased the likelihood of the Fed raising interest rates this year. It is worth noting the increased demand for the yellow metal in China, where the premium on the Shanghai Stock Exchange rose to 4-3 dollars per troy ounce, against $ 2 last week. The demand for defensive assets like gold could rise in the near future amid speculation of a possible default of Greece, which on May 12, should make the payment of the IMF loan. Our medium-term outlook for gold remains positive, but we do not exclude the possibility of falling prices in the near future.
The price of Light Sweet crude oil continues to consolidate near the psychologically important level of $ 60 per barrel of oil. Prices continue to hold on high levels amid the information on the reduction of the number of drilling rigs 21 weeks in a row, but the volume of oil production in the US remains near record levels. The OPEC announced a record volume of oil production in 2012. Thus, the daily production rate in April was 31.04 million bpd. Weak data on manufacturing activity in China, which was published yesterday, strengthened investor confidence in additional stimulus measures from the Chinese government. We maintain a medium-term negative outlook on oil due to excess supply in the market.