18.03.2016 - Oil continues to rise

The price of gold rose on the background of a further decline of the US dollar after the Fed announced its intention to raise interest rates this year only 2 times compared to 4 times increases projected in December. It is worth noting that the demand for defensive assets in terms of stabilization on the stock and commodity markets will decline, which will display a negative impact on the gold price. Today, investor sentiment can affect the data on US consumer confidence index from the University of Michigan (14:00 GMT) and the speeches of officials of the Federal Reserve System. Our medium-term outlook for gold remains negative and we are waiting for the resumption of the negative dynamics in the coming weeks.

The price of futures for Light Sweet crude oil continued to grow amid speculation about the meeting of representatives of major oil producers in Doha on 17 April. According to the oil industry minister of Qatar, about 15 countries have agreed to participate in this summit. These countries produce about 73% of oil in the world. It is worth noting that in case of rising oil prices, US producers of shale oil will resume growth of production and the imbalance of supply and demand of oil will be saved. Iran has refused to freeze the volumes of oil production until the point is not to increase production to 4 million barrels a day. We expect the resumption of the negative dynamics of oil prices in the near future.

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