06.09.2016 - The volatility of oil prices will be high in September
The price of gold has shown a slight increase after the rose on Friday after the publication of statistics on the labor market in the United States that did not meet analysts' forecasts and has led to a decrease in the probability of the Fed raising interest rates, which is positive for the gold price. Support for the stock may be a reduction on the stock markets, which will increase the demand for protective assets. Investors are waiting for the ECB’s head press conference on Thursday that could affect the dynamics of trading. We maintain our medium-term positive outlook on the background of the expected rise in interest in risky assets.
The price of Light Sweet crude oil yesterday showed a significant increase in volatility after Russia and Saudi Arabia that have share in world oil production near 21%, signed a joint statement on the market price stabilization, but after that the Minister of Energy of Saudi Arabia said there is no need to limit oil production levels in the world. According to our forecasts, until the energy summit in Algeria that will be held September 26-28, we will see a sharp price movement on the background of the statements of representatives of different countries and OPEC officials. Our medium-term outlook for oil remains negative on the background of oversupply on the market and production growth in OPEC.