Oil prices fell today below $ 118 per barrel as investor concern about the euro zone economy has shifted to a higher-than-expected growth in demand in China.

Recall that the price of Brent crude reached a nine-month high on Friday after data showed that China's trade volume rose in January.

Meanwhile, we note that, in connection with the celebration of the Lunar New Year, many Asian markets will be closed this week.

Analysts also point out that while the growth in Chinese demand support oil prices, developments in the euro area continue to put pressure on stocks and the euro. In addition, the corruption scandal that threatens political instability in Spain and Italy during the presidential race is getting tougher.

Experts also say that traders will closely monitor the data on U.S. retail sales and production volumes, which will be presented at the end of this, and who can point to further signs of economic growth in the world's largest economy.

In addition, oil prices could get some support from the stormy weather in the densely populated northeastern United States, resulting in hundreds of thousands of people sit without electricity.

March futures price of U.S. light crude oil WTI (Light Sweet Crude Oil) rose to 96.37 dollars a barrel on the New York Mercantile Exchange.

March futures price for North Sea petroleum mix of mark Brent fell 57 cents to $ 118.30 a barrel on the London Stock Exchange ICE Futures Europe.

Gold prices declined substantially while still achieving the most minimal values ​​for the month, which was due to speculation that physical demand will slow during the Lunar New, who this week celebrated in Asia. Also, the pressure on the precious metal have expectations of tomorrow's meeting the Board of European finance ministers, which is projected to be discussed on financial aid to Cyprus and Greece.

Meanwhile, analysts also note that, given the lack of activity on the part of the Chinese market, which is associated with the holiday, demand from other regions may have a significant downward pressure on prices, thus exposing the precious metal to sharp fluctuations.

In addition, experts say that the lack of physical demand, along with worries about Europe, and led to today's decline in the value of gold.

At the same time, if we evaluate the situation from a technical point of view, we can see the price of the precious metal fell today 200-day MA, which is a strong signal to the market. Analysts also point out that the decline today was exaggerated technical weakness, but trading volume was 33% higher than the average for the last 100 days.

February futures price of gold on COMEX today fell to 1661.60 dollars per ounce.