22.01.2016 - Oil rose sharply on the background of closing positions
The price of gold fell amid a weaker US dollar against the euro, which was due to Mario Draghi hints on a possible monetary easing by the ECB in the near future, in order to minimize the risks of deflation and the negative impact of volatility on the financial markets. The instability on the markets continues to support the demand for defensive activity as gold, together with purchases by central banks has a positive effect on gold. In case of continued uncertainty on the markets, the growth will continue in the near future, but the expected tightening of monetary policy of the US Federal Reserve will put pressure on the price of the metal in the long run.
The price of futures for Light Sweet crude oil showed a strong correction on the background of fixed position after a long decline. The closure of short positions was a major factor for growth and negative dynamics according to our estimates will resume soon. Statistics on the growth in US oil inventories by 4.0 million barrels last week against the forecast of 3.3 million barrels was unable to influence the course of trading. It is worth noting that in Iraq in January, was a record volume of oil exports despite the rise in supplies from Iran in connection with the lifting of sanctions. Venezuela calls for the meeting of the unregularly meeting of OPEC have no strong impact on the market due to the rigid position of Saudi Arabia regarding the possibility of a reduction in the quota of the cartel only together with other major producers in the world like Mexico and Russia. Our medium-term outlook for oil remains negative after the completion of the current correction, the decline will resume.