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- 11.11.2015 - Saudi Arabia is struggling for market share in Europe
11.11.2015 - Saudi Arabia is struggling for market share in Europe
The situation with respect to the gold market remains stable. So, after a sharp fall during the previous week, the price decline has stopped and currently quotes are consolidated around the level of 1090 dollars per troy ounce. The reason for the fall was the increase in the probability of the Fed raising interest rates in December, which is now about 70%. Increased seasonal demand for gold in India and China cannot compensate the negative expectations of investors and we forecast that growth of the US dollar will restrain the price of gold in the near future. We expect increased activity of investors on Friday after the release of statistics on retail sales in the United States.
The price of Light Sweet crude oil is consolidated around the level of 45 dollars per barrel and after the recent decrease may show a slight increase within the correction. It should be noted that the main factor that hinders growth remains oversupply of oil on the market and OPEC meeting on December 4 in Vienna with a high probability will not reduce oil production quotas from the current 30 million barrels a day. Saudi Arabia has strengthened the struggle for European markets and began to supply oil to Sweden and Poland. Our medium-term outlook for oil remains negative with a potential reduction of up to 40 dollars per barrel.