14.07.2014 - Oil falls due to lower risk of supply disruptions
The gold price correction in started on the first trading session of the week. It is worth noting that many investment companies retain bearish outlook on gold. According to investment bank analysts, gold will start to decrease in the case of growth of confidence in the economic recovery amid falling inflation risks in the United States. In addition, quotes are supported by geopolitical tensions in the Middle East and Ukraine. Physical demand from Asian consumers remains low. Support for gold may have a significant correction on the stock markets.
The price of Light Sweet crude oil continued to fall and has reached the psychological mark of $ 100.00 per barrel. Among the reasons for the decline was the opening of two major ports for exporting oil from Libya with total capacity of 560 thousand barrels per day. In addition, concerns about the possible fall of oil supply disruptions from Iraq and Iran may increase exports in the near future in connection with the agreements with the West. Medium-term outlook remains negative, but the situation may change in case of escalation of the conflict in the Middle East and oil supply disruptions. Nevertheless, in the near future is not excluded the corrective rebound of the price.