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Commodities roundup: Oil continues to tank, gold erases gains

FXStreet (London) - Oil prices remain under pressure after West Texas Intermediate (WTI) crude broke below USD90/barrel – a 17-month low. Prices have been forced down by oversupply speculation, with WTI declining 1.57 percent on the session to trade at USD89.31.

European Brent crude prices are also under pressure, declining 1.9 percent on the session so far to USD92.37/barrel.

The declines come after predictions of oversupply from Saudi Arabia and Russia as well as the continuing pressure on prices from the US shale gas boom. In a forecast released by the Energy Information Administration in September, it estimated that next year would see US oil production rise to its highest level since 1970. Last month saw US crude production rise to its highest level since 1986. At the same time as increasing its forecast for US production, the IEA 2015 cut its global consumption forecast by 300,000 barrels a day to 93.8 million a day.

Copper hit by factory order concerns

Copper prices remain in decline on weakening US factory order expectations. Data to be released today at 15:00 GMT is expected to show that US factory orders declined by 9.3 percent month-on-month in August. Comex copper prices are currently trading at USD301.40/lb, down 0.72 percent on the session.

Gold struggling on US outlook improvement

Gold has come close to undoing its gains over the year on a stronger dollar outlook, with a stronger US macroeconomic picture strengthening the case for rate hikes. Expectations are for another strong US non-farm payrolls print on Friday, with the US economy expected to have added 215k jobs in September. Gold is currently trading at USD1,216.08.

ECB's Draghi presents details of ABS and covered bond purchase program

Amid anti-austerity protests in Naples, where the Mario Draghi's post-monetary policy decision conference took place this time, the president presented the details of the ECB's ABS and covered bonds purchase programs, introduced at the September meeting.
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EUR/USD steady as ECB releases programmes details

EUR/USD barely reacted and continued to trade at the 1.2660 area after the European Central Bank released the details of the asset buying program announced last month.
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