24.10.2014 - Saudi Arabia reduced oil deliveries

The price of gold dropped in connection with the publication of positive statistics on the economy of euro area and China. Additional pressure on the price was provided by, positive data on the labor market in the United States, where the number of initial unemployment claims totaled 283 thousand. Demand for gold is supported by sales growth in China and India due to the holiday season. Today the dynamics of price will depend on the statistics on new home sales in the United States (14:00 GMT). In case of sales growth, dollar will strengthen and will have a negative effect on the price of gold. The news about the first reported case of Ebola virus in the United States may raise the demand for defensive assets. We maintain our positive medium-term outlook for gold.

The price of Light Sweet Crude Oil after falling to level of 80.00 started to correct. It is worth mentioning that the reason for the sharp drop in the publication of data on the growth of oil inventories in the United States by 7.1 million barrels. Yesterday, the price of oil was supported by the news of the reduction of oil supplies from Saudi Arabia by 328 thousand barrels per day to 9.36 million barrels per day in September. At the same time, the volume of production increased to 9.7 million barrels per day. The news helped to stabilize the price above 80.00 dollars per barrel, but will have a short-term effect. Also positive for the oil has become the data on industrial PMI of the euro area and China which rose respectively to 50.7 and 50.4, which was better than analysts' forecasts. It should be noted that the demand for oil in Asia and Europe remains weak on the background of a possible increase in supplies from Iran. In this regard, we see no reason for the growth of oil prices and maintain a medium-term negative outlook.

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