17.06.2014 - Oil prices will continue to stay at high levels due to the situation in Iraq
The price of gold corrected downwards after the strong growth that was caused by the success of Sunni militants in northern Iraq. The reason for correction have become the positive data on the industry in the U.S., which showed an increase of 0.6% in May and 4.3% compared to the same period last year. Investors are waiting for the Fed's decision on monetary policy, which will be announced on Wednesday. We expect continued growth in gold prices in the medium term due to the high probability of further decline on the stock markets.
The price of oil fell slightly due to a technical correction. Main theme for oil traders is the situation in Iraq, where Sunni insurgents control the north of the country and threatening to take Baghdad. It should be noted that the areas where 90% of oil is produced are on the territory, which is controlled by the government. In the second half of the year the OPEC countries will have to increase the volume of oil production by 1 million barrels per day. At the same time, the volume of production in the United States approached the record level in 44 years at 11.3 million barrels per day. We expect oil prices to continue to stay at high levels in the medium term.