Oil prices declined as Goldman Sachs cut its oil price forecasts. The bank expects the WTI crude to be $45 a barrel in 2016, down from the previous estimate of $57, while Brent is expected to be $49.50, down from the previous estimate of $62.

The International Energy Agency (IEA) released its monthly report on Friday. The agency said that low oil process could lead to the reduction of non-OPEC oil output next year.

"Oil's price collapse is closing down high-cost production from Eagle Ford in Texas to Russia and the North Sea, which may result in the loss next year of half a million barrels a day - the biggest decline in 24 years," the IEA said.

Global oil demand growth is expected to rise to 1.7 million barrels per day (bpd) in 2015, and to be 1.4 million in 2016, up 0.2 million from the previous estimate.

The IEA forecasts OPEC oil output to be around 31.3 million bpd in 2016, up 0.5 million bpd from the previous estimate.

The agency noted that Chinese demand for oil products will remain strong.

"We expect China, the world's second-largest oil consumer, to keep up its crude purchases despite the recent stock market collapse, currency devaluation and steady stream of negative macroeconomic news. Beijing could also buy extra crude to fill up its strategic reserves," the agency said.

WTI crude oil for October delivery fell to $44.72 a barrel on the New York Mercantile Exchange.

Brent crude oil for October declined to $47.94 a barrel on ICE Futures Europe.

Gold price fell on the uncertainty over the Fed's interest rate hike continue to weigh on gold. It remains unclear if the Fed will start raising its interest rate in September or not.

Today's U.S. economic data was mixed. The U.S. producer price index was flat in August, beating expectations for a 0.1% decline, after a 0.2% rise in July.

On a yearly basis, the producer price index decreased 0.8% in August, beating forecasts of a 0.9% decline, after a 0.8% fall in July.

A stronger U.S. dollar and low oil prices still weigh on inflation.

The producer price index excluding food and energy climbed 0.3% in August, exceeding expectations for a 0.1% gain, after a 0.3% increase in July.

On a yearly basis, the producer price index excluding food and energy climbed 0.9% in August, beating forecasts of a 0.7% increase, after a 0.6% rise in July.

The Thomson Reuters/University of Michigan preliminary consumer sentiment index slid to 85.7 in September from a final reading of 91.9 in August, missing expectations for a decrease to 91.2. It was the lowest level since September 2014.

Gold is traded in U.S. dollars. It suffers when the U.S. dollar strengthens, becoming more expensive for holders of other currencies.

October futures for gold on the COMEX today fell to 1099.50 dollars per ounce.

The International Energy Agency (IEA) released its monthly report on Friday. The agency said that low oil process could lead to the reduction of non-OPEC oil output next year.

"Oil's price collapse is closing down high-cost production from Eagle Ford in Texas to Russia and the North Sea, which may result in the loss next year of half a million barrels a day - the biggest decline in 24 years," the IEA said.

Global oil demand growth is expected to rise to 1.7 million barrels per day (bpd) in 2015, and to be 1.4 million in 2016, up 0.2 million from the previous estimate.

The IEA forecasts OPEC oil output to be around 31.3 million bpd in 2016, up 0.5 million bpd from the previous estimate.

The agency noted that Chinese demand for oil products will remain strong.

"We expect China, the world's second-largest oil consumer, to keep up its crude purchases despite the recent stock market collapse, currency devaluation and steady stream of negative macroeconomic news. Beijing could also buy extra crude to fill up its strategic reserves," the agency said.

West Texas Intermediate futures for October delivery fell to $45.57 (-0.76%), while Brent crude slid to $48.76 (-0.27%) after Saudi Arabia rejected producer summit saying that this meeting would not result in a defined solution and action to support prices of oil.

Yesterday prices rose amid data from the International Energy Administration. U.S. crude oil inventories rose by 2.6 million barrels to 458 million barrels last week, while crude stocks at the Cushing delivery hub in Oklahoma fell by 897,000 barrels to 56.41 million barrels. U.S crude oil production fell by 83,000 barrels a day over the same week to 9.1 million barrels a day, its lowest level since January. The same report showed that demand for gasoline over the past four-week period rose almost 4% on an annualized basis.

Analysts say that seasonal oil demand is expected to partly consume inventories in winter and help support prices.

Gold is currently at $1,110.20 (+0.08%) near a four-week low. The precious metal headed for the third weekly decline in a row as investors remain focused on next week's Fed meeting. "We are likely to see sideways trading until the FOMC," HSBC analyst James Steel said meaning the anticipated meeting.

Recent data suggest that the U.S. labor market is quite healthy, while low inflationary pressures increase uncertainty over probability of a rate hike next week.

(raw materials / closing price /% change)

Oil 45.73 -0.41%

Gold 1,110.10 +0.07%