29.05.2015 - Oil production in the US rose to record levels
The price of gold has stabilized near the level of 1190 dollars per troy ounce and shows low volatility. Investors did not rush to accumulate positions ahead of the publication of data on GDP growth in the US (12:30 GMT), and due to the uncertainty regarding the Greek debt restructuring. We expect that Greece will be able to successfully conclude negotiations with creditors, but soon the Greek crisis will continue to maintain volatility at a high level. We keep medium-term positive outlook unchanged due to the expectation of a significant correction on the stock markets and low potential of further decline.
The price of Light Sweet crude oil continues to move within the downtrend. The growth of quotations was yesterday caused by a minor correction of the dollar and the statistics on oil reserves in the United States the volume of which during the last week fell by 2.8 million barrels, against the forecast of a decline of 1.5 million barrels per day. It should be noted that oil production increased by 304 thousand barrels per day to 9.57 million barrels per day and updated a maximum. This fact points to a further fall in prices in the absence of the fall in oil production. The excess of oil on the market is about 1.5-2.0 million barrels per day, which is the main factor that puts pressure on the oil quotations. We are likely to expect a further fall in prices and recommend investors to hold short positions on oil.