Market Overview oil 14.08.09
Dynamics
Quotations in the oil market on Friday 14 August, showed a significant drop in price due to negative sentiment on the stock sites, but also against the backdrop of the strengthening U.S. dollar against most currencies after the U.S. data.
At the New York Stock Exchange NYMEH cost of the September futures for U.S. light crude oil fell to 3.01 dollars and its price, therefore, amounted to 67.51 dollar per barrel.
At the ISE Stock Exchange in London, the cost of oil brand Brent fell by 1.07 to 72.41 dollars per barrel.
Causes
On Friday, August 14, quotes in the market of black gold fell in price because of strengthening the position of the dollar to a basket of world currencies against the backdrop of negative statistical data (consumer confidence index was worse than market expectations), and high market values. Stock sites, as well as the market entered the metal phase correction, thereby producing a negative impact on the oil sector.
news worth noting Saudi Aramco statement that the mining company's power in June reached 12 million barrels per day. The increase in capacity is due to the input field superlegkoy Oil Well aym with a daily production of about 100 thousand barrels of light oil field Hurays with a daily production of around 1.2 million barrels, as well as expand to 250 thousand barrels of production at the oil superlegkoy Shayb. Oil production at the Hursaniya included in the operation last year, reached 500 thousand barrels per day.
What to expect?
The main positive factor in the market of black gold is a speculative interest. Positive sentiment in the stock sites, as well as falling U.S. dollar can have a positive influence on the quotations of oil. Also important message of revitalization in Nigeria militants, notably in the state of Delta in the south-east of the country.
What is fear?
negative side for the black gold are the fundamental basis as well as the technical picture, which shows that the phase correction is not yet finished. Also important to activate many participants commit profits for Oil Futures.
Review precious metals market for 14.08.09
Dynamics
On Friday 14 August, at the tender precious metals demonstrated descending trend as a result of the strengthening dollar on FOREX market because of post data, as well as the fall of the major stock indexes at sites worldwide.
As a result of trades on the COMEX, division New York commodity exchange (NYMEX), quotes on gold fell by 7.80 to 948.70 dollars per troy ounce, the price of silver declined by 26 cents to 14.72 dollars per ounce.
Causes
On Friday 14 August, bids for the precious metals market showed downward trends. The background for this will strengthen the U.S. dollar in the currency market FOREX. A preliminary index of consumer confidence from the University of Michigan was 63.2 in August to 66.0 in July and 70.8 in June. Inflationary expectations have weakened. Against this backdrop, the major U.S. stock indices showed a moderate decline, thereby providing a negative impact on the precious metals.
From the news it may be noted that the production of gold in South Africa continues to fall. In June 2009, in South African gold production fell by 12.2% compared to the same month last year. Currently South Africa is the third in world gold producer after China and the United States. Nevertheless, South Africa, may soon give way to the place of Australia. Release the entire mineral production in June also fell - by 7.3% compared to same period last year. Issue mineral production excluding gold fell by 6.4%.
What to expect?
The main positive factor for the precious metals market is the assumption that the correction of motion suited to its end. For the benefit of growth is also said data from South Africa, where production has declined markedly minerals. The production of gold decreased in June to 12.2% in annual terms.
What is fear?
negative on the market of precious metals comes from the technical component, as well as fixing the market gains on short positions. But the principal did was to strengthen the U.S. dollar in the currency market FOREX.
non-ferrous metals market review for 14.08.09
Dynamics
On Friday 14 August, at the tender quotes for non-ferrous metals have shown significant declines against the backdrop of negative trends in the stock pads and adjacent markets, as well as the strengthening dollar on foreign exchange market.
At the London Metal Exchange LME aluminum closed at a price of 2016 dollars per ton.
Copper at the close of the Exchange cost 6385 dollars per ton.
Nickel bids amounted to a cost 20750 dollars per ton.
Causes
On Friday 14 August, the market of non-ferrous metals showed significant descending trend. The main engines of the adverse movements were pessimistic mood among investors, who have dominated the American stock market. Published economic makrostatistika supported the U.S. currency, thereby increasing pressure on the market of non-ferrous metals. Thus, the preliminary index of consumer confidence from the University of Michigan was 63.2 in August to 66.0 in July and 70.8 in June.
news worth noting that the investment bank Scotia Capital (part of Scotiabank Group) issued a prospectus creating copper Fund (ScotiaMocatta Physical Copper Fund), invites all wishing to invest in profitable projects. According to Prospect, planned investment of at least $ 100 million in copper, which from the beginning of the year has risen significantly in price over the July level of 5500 dollars per ton. Management believes that Scotia Capital, the global economy starts to recover, which makes the copper market leader in the revival of non-ferrous metals. It was expected that part of the money will be placed in the warrants or convertible term contracts LME. Each LME warrant is a paper of copper stored in warehouses. In addition, the copper fund may buy steel directly from manufacturers, in fact, has already held talks with potential suppliers. Of course, there may be difficulties with the management of the Fund, because, for example, it is unclear exactly where the metal will be stored. Management Fund willy-nilly will have to find a place for 20-60 thousand tons of copper. If the case goes to the LAD, it is possible to purchase their own warehouse to reduce costs for storage of copper. However, the idea of Scotia Capital may not pass the test of time: with an annual capacity of world copper market in about 18 million tons to purchase 20 to 60 thousand tons of metal is hardly any significant impact on prices. But, nevertheless, ScotiaMocatta Physical Copper Fund may have an impact on stores LME, which are now kept around 205 thousand tons of copper.
What to expect?
a positive factor in the market of non-ferrous metals at the moment are waiting for the fall of the dollar against most currencies because of the economic makrostatistiki out this week, as well as the establishment of a copper stock - ScotiaMocatta Physical Copper Fund.
What is fear?
negative factors in the market of non-ferrous metals are strong feelings on a fixed income which prevail over a large part of market participants, as well as the technical picture, which gives all the signals are for sale.
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