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21 Oct 2013
Oil grinds slowly downwards, gold consolidates
FXstreet.com (Athens) – Oil moves slowly downwards on Monday amidst a broader dollar recovery, while gold consolidates around 1315 area.
Oil in both sides of Atlantic is trading lower and precisely US Crude Oil falls below $100/brl (down 0.84%) for first time since the 3rd July as of 2013, while Brent Oil is moving south at $109.57/brl (down 0.49%). Market participants could find a couple of reasons to attribute oil’s downtrend behavior. First of all, there is broader American dollar recovery, as the greenback is boosted since the kick off of the Asian trading session, mostly due to a probable correction as well as on profit taking. Furthermore, OPEC’S Badri mentioned that “Oil inventories are healthy, there is a little impact from North Africa oil supply halts, while group’s spare capacity is at comfortable levels.” It seems that Badri’s quotes eased further oil prices, as after he mentioned the above, crude oil price was abruptly dragged below $100/brl. Last, pertaining to oil, we should take into consideration that the past week, Brent and U.S. oil settled 1.2 percent lower, after a sharp fall on Thursday that was fueled by signs of progress around talks between Tehran and the West over Iran's nuclear program. On the other hand, gold is consolidating its recent uptrend momentum hovering at 1316.40, up 0.03%. Gold had fallen on Friday as investors took profits after the previous session's 3% rally on expectations the partial U.S. government shutdown will lead the Federal Reserve to postpone tapering of its bond-buying stimulus.
Oil in both sides of Atlantic is trading lower and precisely US Crude Oil falls below $100/brl (down 0.84%) for first time since the 3rd July as of 2013, while Brent Oil is moving south at $109.57/brl (down 0.49%). Market participants could find a couple of reasons to attribute oil’s downtrend behavior. First of all, there is broader American dollar recovery, as the greenback is boosted since the kick off of the Asian trading session, mostly due to a probable correction as well as on profit taking. Furthermore, OPEC’S Badri mentioned that “Oil inventories are healthy, there is a little impact from North Africa oil supply halts, while group’s spare capacity is at comfortable levels.” It seems that Badri’s quotes eased further oil prices, as after he mentioned the above, crude oil price was abruptly dragged below $100/brl. Last, pertaining to oil, we should take into consideration that the past week, Brent and U.S. oil settled 1.2 percent lower, after a sharp fall on Thursday that was fueled by signs of progress around talks between Tehran and the West over Iran's nuclear program. On the other hand, gold is consolidating its recent uptrend momentum hovering at 1316.40, up 0.03%. Gold had fallen on Friday as investors took profits after the previous session's 3% rally on expectations the partial U.S. government shutdown will lead the Federal Reserve to postpone tapering of its bond-buying stimulus.