11.09.2014 - OPEC predicts decline in oil production

The price of gold is gradually decreasing against the strengthening of the dollar. On the market there is increasing confidence in the earlier increase in interest rates by the Fed. In addition, in the near future will be completed the program of quantitative easing. Geopolitical tension is also reduced on the background the statement of Ukrainian authorities about the withdrawal of Russian troops from the territory of eastern Ukraine. The growth of quotations of gold can support the correction on the stock markets, but the opportunity to continue the growth of the dollar negatively impacts the growth prospects of gold. We maintain our positive outlook for the medium-term, but we expect further downward price movement in the near future.

The price of Light Sweet crude oil continues to fall against the strengthening dollar, lower oil demand in Europe and in the world as a whole. It is also worth noting that OPEC was forced to reduce the amount of oil production in response to falling demand and rising oil production in the United States. Thus, the projected oil production of OPEC countries will be reduced to 29.2 million barrels, which is 200 thousand barrels less than stated in the forecast for August. We expect a further decline in oil prices and recommend holding short positions.

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