Crude Oil

Crude oil futures fell on Friday so long as the consumer mood index data showed its decrease that promoted downward pressure upon energy resources. 

September contract on the sweet crude oil decreased by $3.01 or 4.3%, to $67,51 per barrel at the New York Commodity Exchange. Quotations of Brent oil futures fell by $1.07 to $71,94 per barrel. Following the results of the week, oil prices decreased by $3.42 or 4.8 %, from $70.93 – closing level of last Friday.

The prices again managed to exceed a level of 73$ per barrel due to the oil market has continued to walk in step with stock indexes which fell on Friday amid the negative data release that has generated doubts about fast economy recovery and growth of demand for energy resources. Besides, earlier during the week the FRS emphasized that consumer expenses are still restrained by "workplaces reduction, slow incomes growth and the complicated access to crediting".

On the next week, investors will expect the oil reserves data release. Last week oil reserves grew the third sequent week and almost on 20 % exceed last year levels. Demand for petroleum decreased by 2,7 % last week and reached the lowest level for this week from 2001.

Gold

Gold futures weakened on Friday amid profit fixing and decrease in inflationary expectations and also the US dollar growth.

The December contract on gold fell by 7,80$ to 948,70$ per ounce at COMEX.

The University of Michigan Consumer Sentiment Index, released on Friday, came to 63,2 in August against 66,0 in July and 70,8 in June. Inflationary expectations weakened. The expectations index concerning inflation for a next year made 2,8 % against 2,9 % in July, and an index of expectations for five next years – 2,9 % against 3,0 % month before.

At the same time the USA July consumer price index fell to 2,1 % in comparison with the same period of previous year that became the most considerable decrease since 1950. In comparison with the last month CPI remained without changes in July. Base CPI, not considering the food and energy resources prices, grew by 0,1 % that also corresponded to expectations.

Thus, gold futures did not manage to exceed a maximum of the previous session, after so low inflation indicators.

Kind regards,

Analyst: Vladimir Donin.