Market Overview oil 31.07.09
Dynamics
Quotations in the oil market on Friday, July 31, continued upward movement against the backdrop of the fall of the dollar in the foreign exchange market and the release of favorable data on the U.S. GDP.
At the New York Stock Exchange NYMEH cost of the September futures for U.S. light crude oil rose to 2.51 dollars and its price, therefore, amounted to 69.45 dollar per barrel.
At the ISE Stock Exchange in London, the cost of oil brand Brent rose 1.59 to 71.70 dollars per barrel.
Causes
On Friday, July 31, quotes in the market of black gold were aimed at the movement in the currency market, associated with the output of the U.S. GDP. Before the publication of data on oil prices fell below 67 dollars a barrel, but then turned to the maximum trading session. Rising trends constrainedweak quarterly reporting Chevron, the second-largest U.S. oil company, which showed that net profit in the first half of 2009 fell more than 3 times - to 3,58 billion dollars against 11.14 billion dollars from during the same period a year earlier.
news worth noting that Saudi Arabia at the request of the Secretariat of OPEC reduced oil production to its lowest level of the last six years. The June production is estimated to total 8.02 million barrels per day. For comparison: in August 2008, production stood at 9.54 million barrels per day. Meanwhile, the kingdom has in the development of one of the largest new fields. In June, has started production at the giant Hurays. It produced 1.2 million barrels daily of oil Arab Light. Inside the kingdom needs oil allowed to grow, without entering into contradiction with the international market.
What to expect?
Oil continues to be traded above $ 70 mark per barrel on Monday on expectations of increasing demand for oil and against the backdrop of growth in stock markets. Most likely this trend will continue throughout the week, but with less success.
What is fear?
However, do not be ruled out and downward movement, as well as a large price in the market of black gold was not confirmed by real demand, but stocks have shown a significant increase on the previous week.
Review precious metals market for 31.07.09
Dynamics
On Friday 31 July, at the tender quotes for precious metals have shown a significant increase in price due to weakening of the positions of the U.S. currency and the positive sentiment in the market of black gold.
As a result of trades on the COMEX, division New York commodity exchange (NYMEX), quotes on gold rose by 18.50 to 955.80 dollars per troy ounce, the price of silver increased by 45.0 to 13.94 dollars per ounce .
Causes
On Friday 31 July at the auction market for precious metals has shown one of the most significant increase in recent trading sessions. Published data on GDP United States had a strong pressure on the dollar. Thus, according to published data, the U.S. GDP in the second quarter fell to 1.0%, which was better than forecasts (-1.5%) and significantly better than the first quarter (-6.4%). Support was also provided gold stock sites, which have demonstrated the stability of stock prices.
From the news it may be noted that gold mining in Russia in the first half of 2009 increased by 27% compared to the same period last year to 66.94 tons. The growth of production in the first half ensured, mainly, Chukotka and the Amur region by speeding up build capacity at fields Kupol (developing the Canadian Kinross), Karalveem (owned by a group of Lions Levaev), Pioneer (Peter Hambro) and Berezitovoe (High River Gold). However, in June 2009, production fell by 23.5% compared to June 2008 due to falling production from placer.
What to expect?
Further weakening of the dollar will continue to support the precious metals group, as market participants became more and more to hedge against the weakening U.S. currency. By some estimates, investors are once again beginning to build up long positions, after work on Friday, most stop short-order items.
What is fear?
But not immediately jump on the side of the bulls. If we look at adjacent markets, namely, the oil market, one can see that the price of black gold are in a fairly high level, and in the case of the downward movement of the market is pulling all down.
non-ferrous metals market review for 31.07.09
Dynamics
On Friday 31 July, at the tender quotes for non-ferrous metals have shown a moderate increase in the price of a devaluation of American currency, the output of positive statdannyh, as well as the sustained momentum stock pads.
At the London Metal Exchange LME aluminum closed at a price of 1862 dollars per ton.
Copper at the close of the Exchange cost 5749 dollars per ton.
Nickel in the tender price was 17625 dollars per ton.
Causes
On Friday 31 July quotes on non-ferrous metals continued their upward trend. The background for this was a widespread drop in the dollar on the currency market FOREX, as well as a significant strengthening of prices for precious metals market. Made a positive market share and the stock of oil platforms, which have also witnessed the reign of the bulls.
news worth noting that the Chinese Zhonghui Mining Group plans to invest 3.6 billion dollars in projects for the development, production and refining of copper in Zambian copper belt and in the north-eastern province. These investments are part of an agreement between the Chinese and the Zambian Government, which provides money for five years, starting this year.
What to expect?
upward trend this week may continue, but analysts are beginning to show concern about the sustainability of this rally. Large investment funds continue to buy the most liquid assets, such as copper, for a speedy recovery in demand. The main argument is a large load cable orders of Chinese factories, which are employed in government-funded projects.
What is fear?
If you look at the graphs, one can see that some metals are near the highs of the year. Add a strong technical performance, we can assume a significant record of profits by investors.
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