23.07.2015 - US crude oil inventories rose last week

The price of gold continues to consolidate near the level of $ 1,100 an ounce, after a sharp decline at the beginning of the week. Demand for gold is low at the Asian markets due to seasonal factors. In addition, expectations of tighter of the US monetary policy in September has negative effect on gold and leads to the strengthening of the US dollar. Demand for the metal may rise in the case of a significant correction at the US stock markets. We expect a further fall in prices, but expect the resumption of growth in the medium term.

The price of Light Sweet crude oil fell below $ 50 a barrel amid a number of negative factors that continue to put pressure on the oil quotations. Thus the, US crude oil inventories last week rose by 2.5 million barrels against an expected decline of 1.7 million barrels per day. The main factor that puts pressure on the quotes is oversupply of oil on the market of about 2.0-2.5 million barrels per day. Removal of sanctions on Iran's oil exports will increase supplies to around 0.7 million barrels next year. We see no reason to change the current negative trend to the positive and maintain a medium-term negative outlook.

RISK WARNING: Trading of complex financial products, such as Stocks, Futures, Foreign Exchange ("Forex"), Contracts for Difference ("CFDs"), Indices, Options, or other financial derivatives, on "margin" carries a high level of risk, and may not be suitable for all investors. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading these markets, and seek advice from an independent financial advisor if you have any questions or doubts. Please carefully read our full "Risk Disclosure" and "Risk Disclosures for Financial Instruments & Investment Services". FXFINPRO Capital is the trading name of PFX Financial Professionals Limited, a limited liability company formed under the laws of Cyprus, registered with the Registrar of Companies in Nicosia, Cyprus, under nr. HE 237840 and regulated by the Cyprus Securities and Exchange Commission with license number 193/13.