25.02.2016 - Oil prices may return to the lows after the recent growth
The price of gold showed growth yesterday and today corrected downwards. The reason for the growth is the increased interest in defensive assets against the backdrop of the uncertainty on the situation concerning prospects of growth on the stock markets, as well as the revaluation of the possible impact of the Fed raising interest rates on the dynamics of the precious metal prices. Investors are waiting for tomorrow's publication of the preliminary report on US GDP growth in Q4, which will increase the volatility on the market. The potential for further increase is limited and we maintain a medium-term negative outlook for gold.
The price of futures for Light Sweet crude oil rose yesterday after the publication of statistics on US oil inventories, which increased by 3.5 million barrels against an expected increase of 2.0 million barrels. It is worth noting that gasoline inventories and distillers in the US declined by 2.2 and 1.7 million barrels. Support for prices was the weakening of the US dollar. According to our estimates fall in prices will continue in the near future and medium term to the target levels of 28 and 25 dollars per barrel, due to persistence of excess oil supply on the market.