13.07.2015 - Number of drilling rigs in the United States has increased
The price of gold began to decline today after news on previous agreement between Greece and the Eurogroup to provide loans among which 25 billion euros will be aimed at the recapitalization of Greek banks. It is worth noting that the formal signing of the agreement may occur before the end of the week after the Greek parliament will approve the decision. The vote will probably be held until Wednesday. Improved investor sentiment in China also contributed to the fall in gold prices. Demand from investment funds and consumers in Asia remains low. We expect gold to fall soon, but maintain a medium-term positive outlook.
The price of Light Sweet crude oil fell last week after the correction. Negative for the market was the publication of forecasts of slowing growth in oil demand to 1.2 million barrels a day, that is 0.2 million barrels per day less than the previous estimate. It is worth noting that the number of active oil rigs in the United States increased by 10 over the last week, indicating the decrease in the probability of falling production levels of oil in the United States and have a negative impact on the balance of supply and demand on the oil market. On the other hand, investors are watching at the talks on Iran's nuclear program, the results of which will lead to a strong price movement. We maintain a medium-term negative outlook on oil and expect increased price volatility in the near future.