Oil prices fell by more than a percent, while continuing yesterday's trend. Market pressure put lingering concerns about the global oversupply.

Recall, Genscape reported yesterday that last week (July 19) oil reserves in Cushing terminal rose 725,176 barrels. Earlier this week, the US Department of Energy announced that crude oil inventories fell more than expected, but gasoline inventories unexpectedly rose. According to the report, during the week of 9-15 July crude oil inventories fell by 2.3 million barrels to 519.4 million barrels, while remaining at high levels by historical standards for a given period of the year. Analysts had forecast a decline of 2.1 million.

Analysts say that the oil surplus was transformed into a surplus of refined petroleum products.

Another factor was the rise in price of the dollar, which makes US dollar-denominated oil prices higher for holders of other currencies.

In addition, participants expect the Baker Hughes oilfield services company data on the number of US rigs. Recall, from 9 to July 15, the number of drilling rigs in the US increased by 6 to 357, an increase for the third consecutive week and the sixth week of the last seven. Renewed growth has spawned speculation that the country's oil production may soon begin to grow, which in turn increased the concerns about the oversupply of oil.

The cost of the September futures for US light crude oil WTI fell to 44.06 dollars per barrel.

September futures price for North Sea petroleum mix of mark Brent fell to 45.42 dollars a barrel on the London Stock Exchange ICE Futures Europe.

Gold prices have dropped reflecting the increase in the overall risk appetite and increasing the likelihood of further tightening of monetary policy by the Fed at the end of the year. Pressure on the precious metal also was a strengthening of the US dollar against the background of positive data.

Data provided by Markit Economics, signaled a further recovery of business conditions across the US manufacturing sector, led by sustained expansion of incoming new orders and the very rapid growth in production. Creation of new jobs had accelerated, and was the most rapid in the last 12 months. Meanwhile, the purchase prices rose at the fastest pace since November 2014, but selling prices rose only slightly. Overall, the preliminary manufacturing PMI index rose to 52.9 in July compared with 51.3 in June. It was predicted that the indicator will improve only to 51.6 points. Analysts say the recent data from US increases the likelihood of the Fed raising interest rates. This is unlikely to happen at the July meeting, but closer to the end of the year. Futures on the federal funds currently estimated the probability of a 20% rate hike in September. Meanwhile, the chances for a increase in December is 40% compared with less than 20% a week ago, and 9% at the beginning of the month. Higher rates hurt gold prices, which does not bring guaranteed income and become less in demand relative to higher-yielding assets.

BNP Paribas experts reviewed in the forecast for gold for 2016 and 2017. Now they expect the average gold price of $ 1245 in 2016 (previously $ 960) and $ 1,195 in 2017 (previous forecast $ 860).

Gold reserves in the largest gold ETF-fund SPDR Gold Trust fell yesterday to 0.22 percent, reaching the level of 963.14 tons.

The cost of the August gold futures on the COMEX fell to $ 1320.20 per ounce.

This morning in New York futures for WTI crude oil were down -0.80% to $ 44.39 and Brent oil futures fell by -0.43% to $ 46.00 per barrel. Thus, the black gold is trading lower as analyzed data from the US indicated a surplus of oil on the market, while the volume of exports from Iraq's black gold is growing. Given the huge oil volumes stored in tanks and tankers on land and water, rebalancing the market takes longer than expected.

(raw materials / closing price /% change)

Oil 44.54 -0.47%

Gold 1,331.20 +0.02%