Commodities Update 2

Commodities Update 2

den 9 juni 2015

Important legal information

Oil supply exceeds demand / Gold price slightly rises

The OPEC’s meeting in Vienna last Friday went as expected. Its combined daily production target remains at 30 million barrels. The news led to a decrease in the price of Crude oil, extending last week’s decline. OPEC pumps 40% of the world’s crude oil. It exports about 60% of the oil that’s traded globally. The huge market share gives OPEC an opportunity to impact the oil market. Due to the high level of production, the oil supply exceeded the demand in the past months. According to various analysts, this development could have a negative influence on the oil price.

Gold prices gained momentum this week, rebounding after last week’s losses. Gold, which is not attached to dividends or interest rates, struggles to compete with high-yield bearing assets in periods of rising interest rates. The increased likelihood, that the FED could raise interest rates later this year may adversely affect the gold price.



2022-12-08 03:43:58