review the oil market for 19.10.09

Dynamics

Quotes of the oil market on Monday, October 19 jumped in price to a new annual maximum to a mark of $ 80 per barrel against the backdrop of the fall of the dollar in the currency market FOREX, and also because of the positive trend of the stock markets and adjacent areas.

At the New York Stock Exchange NYMEH cost of the November futures for U.S. light crude rose by 1.08, and its price, therefore, amounted to 79.61 dollar per barrel. On the ICE exchange in London, Brent crude futures price rose 0.78 to 77.77 dollars per barrel.

Causes

On Monday, October 19 quotes on the market of black gold have jumped in price to a new annual maximum to a mark of $ 80 per barrel, by demonstrating with an eight in a row closing on a positive territory against the backdrop of the fall of the dollar in the FOREX market because of growth in risk appetite, based on the optimism about the prospects for reviving the global economy, but also because of the positive trend of the neighboring markets, namely the rise in prices for precious metals and equity grounds, which are updated yearly peaks due to unexpectedly high earnings for the quarter and 3 reported that the economy has recovered and can strengthen the financial system, the part of regulators (Dow Jones industrial average - 10092.19, Nasdaq Composite - 2176.32, SP 500 - 1097.91).

From the news it is worth noting the message the president of LUKOIL Vagit Alekperov at a briefing in Yekaterinburg that the investments LUKOIL in the strategic development program of the oil company until 2019 amount to 100 billion dollars. Development Program to consider the management of the Company, and in October the board should accept it. Speaking about the parameters of the program, he said that will be stepped up production, and will be used overseas assets. Thus by 2019 plan to modernize all the oil refineries of the company.

What to expect?

The main event of today's trading session is out of data on stocks of petroleum and petroleum products from the U.S. Institute of Petroleum. Market participants expect to reduce stockpiles of distillates and gasoline, but, however, expect growth stocks of crude oil. Among distillates include heating oil and diesel fuel.

Why worry?

Much of the market participants, and some analysts are skeptical that the increase in demand due to economic recovery, will be sufficient to reduce the huge reserves of oil and fuel accumulated during the most severe economic downturn.

Overview of precious metals market for 19.10.09

Dynamics

On Monday 19 October to the results of auctions of the quotation for gold and silver have shown upward trends in price against the backdrop of the fall of the dollar in the currency market FOREX, and also because of the positive trend of the stock sites and adjacent markets, and due to technical factors.

As a result of trading on the COMEX, division of the New York Mercantile Exchange (NYMEX), quotes gold futures rose by 6.60 to 1058.10 dollars per troy ounce, quotes, silver futures rose 20 cents to 17.62 dollars per ounce.

Causes

On Monday, October 19 quotes for precious metals market showed upward trends in price against the backdrop of the fall of the dollar in the FOREX market due to rising risk appetite, based on the optimism about the prospects for reviving the global economy, but also because the positive trend of the stock sites, where the quarterly reports pushed major indexes to update the annual peaks - so, Dow Jones industrial average was 10092.19 (96.28), Nasdaq Composite - 2176.32 (19.52), SP 500 - 1097.91 (10.23), and adjacent markets, namely new annual highs in the oil market - about 80 dollars per barrel, and because of technical factors - levels of support for the graphics survived and were the starting point for growth. Quotes silver futures rose after the gold - one of the main causes of rising prices for copper.

From the news it may be noted that the company Barrick Gold Corp (Canada) has entered into an agreement with Xstrata Copper Chile SA, a subsidiary to Swiss Xstrata plc, to acquire for 465 million dollrov 70% of Chilean copper exploration project -gold deposits of El Morro in Chile. Developing a project of El Morro is located in the Atacama region, and, according to company Xstrata, has the resources in categories measured by the established 8,3 million ounces of gold and copper, 6.3 billion pounds (2857 tonnes). Barrick Gold in Chile already owns two major projects on development of deposits: 100% Pascua-Lama and 50% of Cerro Casale. The new project is located 70 km north of the Pascua-Lama and some 110 km south of Cerro Casale. The remaining 30% of the El Morro project owned by New Gold Inc (Canada), which has the first right to buy 70% of the project, which it can realize up to 11 January 2010

What to expect?

According to many analysts and traders, the price of gold may continue to grow and set new records next week against the possible fall of the dollar in the foreign exchange market, FOREX, and also because of the positive trend of the stock markets and adjacent areas.

Why worry?

Many analysts recommend to pay attention to record-high net speculative long positions, open to gold, the closing of which causes great concern about the possible strong downward correction.

non-ferrous metals market review for 19.10.09

Dynamics

On Monday, October 19 quotes for non-ferrous metals on the basis of trading on the London Stock Exchange have shown positive changes in price against the backdrop of the fall of the dollar in the currency market FOREX, and also because of the positive trend of the stock sites and adjacent markets, and due to technical factors .

At the London Metal Exchange LME aluminum price closed at 1,870 dollars per tonne. Copper at the close of the exchange was worth 6259 dollars per ton. Nickel in the auction was the price of 18825 dollars per ton.

Causes

on Monday 19 October the prices of nonferrous metals on the basis of trading on the London Stock Exchange have shown positive changes in price against the backdrop of the fall of the dollar in the currency market FOREX, and also because of the positive trend of the stock sites, where the Dow Jones Industrial Average broke the mark again at 10000 points, and adjacent markets, namely the rise in prices for oil and precious metals, and because of technical factors - technical buying related to the penetration of a strong resistance level. Leader of growth was the copper, where one of the reasons was the 48-hour strike in Peru.

From news worth noting is that the Group Rio Tinto (Australia-UK) and Canada's Ivanhoe Mines Ltd have signed an investment agreement with the Government of Mongolia for the development of copper-gold deposit ylo-Tolgoi. Start of production at the deposit is planned for 2013, expected production volume will amount to 450 thousand tons of copper and 330 thousand ounces of gold. In accordance with the agreement, the Mongolian Government will receive 34% of the company Ivanhoe Mines Mongolia Inc LLC, the principal holder of a license to develop the deposit. Rio Tinto had previously acquired a 9,95% Ivanhoe for 303 million dollars and is obligated to purchase a further 9.95% stake for 388 million dollars, subject to signing with the Mongolian government unconditional investment agreement. Stocks ylo-Tolgoi deposits estimated at 930 million tons of ore containing 0.5% copper and 0.36 g. /t. gold.

What to expect?

According to some analysts, China's economy, seems to justify the expectations of its projected GDP growth for this year - 8%, which is seriously support and push up prices of non-ferrous metals. In this leadership position, many market participants give the copper.

Why worry?

Some market participants believe that prices of nonferrous metals in the coming months may go down in value, especially if the dollar ceases to weaken against the euro, however, pointed out that any subsidence in the prices will be temporary.

Party tables

Where do you take the money? - In the bedside table. - And who put them there? …