Oil prices hit 12-year lows on concerns over the global oil oversupply. Today's drop in the Chinese stock indexes added to concerns over the slowdown in the Chinese economy.

A stronger U.S. dollar also weighed on oil prices, making oil more expensive to foreign buyers.

Iran plans to invest in a refinery in Spain. The refinery would help to access the European market once the sanctions are lift off.

Abbas Kazemi, the head of the state-run National Iranian Oil Refining and Distribution Co., said over the weekend that Iran plans to invest in refineries abroad to boost oil exports.

WTI crude oil for February delivery declined to $31.64 a barrel on the New York Mercantile Exchange.

Brent crude oil for February fell to $31.80 a barrel on ICE Futures Europe.

Gold price fell but remained supported as the Chinese stock indexes dropped again on concerns over the slowdown in the Chinese economy. The Chinese National Bureau of Statistics released its consumer and producer price inflation data for China on Saturday. The Chinese consumer price index (CPI) rose at annual rate of 1.6% in December, in line with expectations, after a 1.5% gain in November.

The Chinese producer price index (PPI) dropped 5.9% in December, missing expectations for a 5.8% fall, after a 5.9% decline in November.

February futures for gold on the COMEX today fell to 1100.40 dollars per ounce.

The oil driller Baker Hughes reported on Friday that the number of active U.S. rigs declined by 20 rigs to 516 this week. It was the lowest level since April, 2010.

The gas rig count decreased by 14 to 148.

Combined oil and gas rigs declined by 34 to 664.

According to Baker Hughes, the total rig count has fallen by 1,086 in 2015, while the oil rig count is down by 905.

Iran plans to invest in a refinery in Spain. The refinery would help to access the European market once the sanctions are lift off.

Abbas Kazemi, the head of the state-run National Iranian Oil Refining and Distribution Co., said over the weekend that Iran plans to invest in refineries abroad to boost oil exports.

"The petroleum ministry wants to invest in refineries abroad, whose crude oil will be met by Iran," Kazemi said.

The U.S. sent a B-52 bomber, which is capable to carry nuclear weapons, close to the North-South Korean border in response to a hydrogen nuclear bomb test.

North Korea announced on last Wednesday that it successfully tested hydrogen nuclear bomb.

The Chinese National Bureau of Statistics released its consumer and producer price inflation data for China on Saturday. The Chinese consumer price index (CPI) rose at annual rate of 1.6% in December, in line with expectations, after a 1.5% gain in November.

Food prices rose at an annual rate of 2.7% in December, while non-food prices increased 1.1%.

On a monthly basis, consumer price inflation increased 0.5% in December, after a flat reading in November.

The Chinese producer price index (PPI) dropped 5.9% in December, missing expectations for a 5.8% fall, after a 5.9% decline in November.

West Texas Intermediate futures for February delivery fell to $32.54 (-1.87%), while Brent crude dropped to $32.83 (-2.15%) suggesting that weak economic outlook for China will prolong the period of low prices. "Chinese oil data are finally starting to reflect weak economic activity. Implied oil demand in China contracted 4.9 percent (537.3 thousand barrels per day) month-on-month and 2.0 percent (216.7 thousand barrels per day) year-on-year in November, the first decline since July 2014," Barclays said on Friday.

Data showed that speculators have cut their net-long positions to fewer than 50,000 contracts (50 million barrels), and added to their net-short positions. This means that traders don't expect prices to rise soon.

Gold climbed to $1,104.70 (+0.62%) and is currently close to a nine-week high reached on Friday. Demand for this safe-haven precious metal is supported by the ongoing weakness in Chinese stocks and tensions in the Middle East. Sources reported that Chinese officials doubt that China's economy will see expansion of more than 6.5% this year.

(raw materials / closing price /% change)

Oil 32.88 -0.84%

Gold 1,104.10 +0.56%