19.05.2014 - Oil exports from Libya is growing, but is reduced from Iran
The price of gold fell slightly on the background of positive data on the U.S. housing market, which led to an increase in demand for risky assets. Demand for the metal in Asia and from investment funds, remains weak. Despite this, the prices are supported by the tense situation in Ukraine, the deterioration of which is expected before the presidential election on May 25. We keep medium and long term positive outlook for gold.
The price of Light sweet crude oil continues to consolidate near the level of 102.00 dollars per barrel. Increase in oil production to 300 thousand barrels per day in Libya, was compensated by a decrease in supplies from Iran to the level of the quota of 1 million barrels. In case of success of the negotiations on the nuclear program of the Islamic Republic, Iran's exports may rise. Traders are closely watching the possible lifting of restrictions on oil exports from the U.S. and the situation in Ukraine. We maintain a long-term negative outlook for oil and expect reduction of quotations after the stabilization of the situation in Ukraine.