19.05.2016 - Growth of inventories in the US has led to a drop in oil prices

The price of gold showed a decrease against the strengthening of the US dollar after the publication of the previous Fed meeting minutes at which it was decided to keep the monetary policy settings unchanged. According to the minutes, members of the Federal Open Market Committee supported further tightening of monetary policy in case of improving macroeconomic indicators. It is worth mentioning that previously was published the data on the growth of consumer inflation in April by 0.4%, together with a strong labor market statistics will encourage the Fed to raise interest rates. In this context, our medium-term outlook remains negative, but on the other hand, soon the gold may rise in case of a fall on the stock markets.

The price of Light Sweet crude oil falls after was published the data on the US oil inventories, which again rose by 1.3 million barrels, against an expected reduction of 3.1 million barrels. In addition, the fall was accelerated due to the strengthening of the US dollar. It is worth noting that support for oil prices are disruptions of oil supplies from Canada in connection with forest fires and attacks on oil infrastructure in Nigeria and the tense situation in Libya. We expect that in the near future the fall of oil will continue and the potential for further growth is limited.

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