12.06.2014 - OPEC meeting did not affect the oil market
Gold prices continue to consolidate in a narrow range after the previous increase against decrease in global economic growth forecast by the World Bank from 3.2% to 2.8%. Let us recall that the decline was caused by abnormally cold winter in North America and Ukrainian conflict. We expect continued growth in gold prices due to increased probability of correction on the stock markets of the world, which will lead to increased demand for defensive assets like gold.
The price of oil once again has failed to overcome the strong level at 104.00 dollars per barrel. Increase in oil production and reduced forecast for prospects of global economic growth deteriorate further rise in oil prices. The OPEC meeting brought no surprises to the market. Statistics on oil inventories from the U.S. Department of Energy showed that crude oil inventories fell by 2.6 million barrels, which is 2 times more than expected. Despite this, we expect a further decline in oil prices in the long term.