Oil prices fell today, dropping at the same time below $ 60 (Brent) and $ 50 (WTI), which was due to concerns about oversupply and continued growth of the dollar.

Pressure also had a government report that showed last week that US crude stocks rose to their highest level in at least 80 years, indicating that the low prices have not affected the production. Meanwhile, industry research group Baker Hughes reported that the number of drilling rigs for oil in the US fell by only 37 last week, showing the smallest weekly drop this year, compared with a decrease of 84 rigs in the previous week. The number of drilling rigs for oil in the US is 1019, which is the minimum in August 2011.

The focus was also news that Oman plans to increase oil production in the conditions of oversupply in the market. Earlier, Deputy Minister of Oil and Gas Industry of Oman Salim al 'Awfi said that this year the volume of oil production will be increased to 980 thousand. Barrels daily, which is 4% higher compared to 2013. But serious decline in supply of oil and rising prices in the near future should not be expected. Analysts say that as long as the world does not happen a significant reduction in oil production and increase economic activity in the United States and China, the market will remain highly volatile. US Energy Information Administration in 2015-2016 still expects growth of production and the expansion of oil reserves in the country, contrary to expectations that production will decline because of falling world prices.

It should also be emphasized that the oil came under pressure as the biggest strike since 1980 at US refineries extended for another 12 enterprises. Experts say that any breach of the supply from these plants can seriously affect the demand.

Meanwhile, investors remain cautious, because today Athens must submit a list of reforms to the country's creditors to provide bailout extension for another four months, which would gain time to reach new agreements with creditors.

March futures price for US light crude oil WTI (Light Sweet Crude Oil) dropped to 49.38 dollars per barrel on the New York Mercantile Exchange.

April futures price for North Sea Brent crude oil mix fell $ 0.31 to $ 59.72 a barrel on the London Stock Exchange ICE Futures Europe.

Gold prices rose markedly, departing from the seven-week low, and a foothold above $ 1200. Support for precious metals were disappointing US data, as well as the fall of the American stock indexes.

National Association of Realtors (NAR) reported that sales of existing homes fell in January, highlighting the uneven recovery of the housing market, which appears almost six years after the end of the recession. According to the data, housing sales in the secondary market fell by 4.9% last month from December and reached a seasonally adjusted annual rate of 4.82 million, said on Monday is the slowest pace in nine months. Economists had expected in January sales were down to the level of 5.03 million. Sales for December were revised to 5.07 million. 5.04 million. Sales in January rose by 3.2% compared to 2014 year. Given the current sales pace, it would take 4.7 months to exhaust the supply of homes on the market. The median sales price of homes in the secondary market was up 6.2% compared with a year earlier, at $ 199,600 in January.

The course of trade is also affected by expectations of speech Chairman of the Board of Governors of the Federal Reserve Janet Yellen before the Senate Banking Committee. Her statement will be watched for any indication of when US interest rates will go up.

"Alluding to the fact that the Fed is in no hurry to raise interest rates is likely to trigger a rise in gold prices," said Bart Melek, an analyst at TD Securities. He expects that by the middle of March, the price of gold reached the level of 1229 dollars per troy ounce. "But we can expect volatility, as prices will depend on the economic data," - he said. Strong data provoke the fall in gold prices, while poor performance will have the opposite effect, he said.

Recall, gold is under pressure in recent weeks amid lingering expectations that this year the Fed will raise interest rates. Expectations rise in interest rates has a negative impact on the dynamics of the price of gold, because it can not compete with earning assets at high rates.

April futures price of gold on the COMEX today rose to 1203.50 dollars per ounce.

Oil prices declined in today's trading after rising earlier on worries about an U.S. oversupply and U.S. stockpiles at record highs leaving Crude trading back below USD60 and WTI slightly above USD50. Brent Crude lost -1.10%, currently trading at USD59.56 a barrel. On January 13th Crude hit a low at USD45.19 and began to rise on reports on declining rig numbers in the U.S. and capital expenditure cuts. West Texas Intermediate declined by -1.44% currently quoted at USD50.08.

Oil prices lost more than 50% between June and January before rebounding from lows. Worldwide supply still exceeds demand in a period of low global economic growth and the OPEC refusing to cut output rates to stabilize prices. Smaller OPEC members want to cut production but the organisation, responsible for 40% of worldwide production focuses on its fight for market share. Rising U.S. stockpiles are contributing to a global glut that drove prices lower. The U.S., Brazil, Russia and the OPEC are producing at record levels.

Gold declined today to 7-week lows, back below the USD1,200 threshold as Eurozone's finance ministers approved in a provisional deal the extension of Greece's bailout for four further months. Greece must submit a list with planned measures until today in order to secure the extension. Eurozone's finance ministers will then decide whether the proposed reforms are enough.

A stronger U.S. dollar and the prospect for higher U.S. rates weigh on the precious metal as the precious metal is dollar-denominated and not yield-bearing. On Tuesday all eyes will be on Federal Reserve Chair Janet Yellen who will speak in front of the Senate Banking Committee for further indication on when a possible interest rate may take place.

The precious metal is currently quoted at USD1,193.30, -0,72% a troy ounce. Gold fell 2.3% last week, a fourth straight loss. On Thursday the 22nd of January gold reached a five-month high at USD1,307.40.

BLOOMBERG

Yellen Faces Congress Amid Direst Threat to Fed Since Dodd-Frank

(Bloomberg) -- Chair Janet Yellen testifies before Congress this week with the Federal Reserve facing its gravest political threat since the drafters of the Dodd-Frank act tried to strip it of its supervisory powers.

The Fed is being pressured from the left and the right. Senator Elizabeth Warren of Massachusetts and other Democrats have blasted the central bank for being too cozy with the banks it oversees. Republicans, including potential 2016 presidential contender Senator Rand Paul of Kentucky, have focused on its aggressive monetary policy.

Lawmakers from both parties are demanding greater transparency and accountability from an institution that has the power to impose capital requirements for banks and influence how much Americans pay for a mortgage or an auto loan.

Source: http://www.bloomberg.com/news/articles/2015-02-23/yellen-faces-congress-amid-direst-threat-to-fed-since-dodd-frank

REUTERS
Greece readies reform promises

(Reuters) - Greece's government prepared reform measures on Sunday to secure a financial lifeline from the euro zone, but was attacked for selling "illusions" to voters after failing to keep a promise to extract the country from its international bailout.

Leftist Prime Minister Alexis Tsipras has insisted Greece achieved a negotiating success when euro zone finance ministers agreed to extend the bailout deal for four months, provided it came up with a list of reforms by Monday.

Greeks reacted with relief that Friday's deal averted a banking crisis which fellow euro zonemember Ireland said could have erupted in the coming week. This means Tsipras has stood by one promise at least: to keep the country in the euro zone.

Source: http://www.reuters.com/article/2015/02/22/us-eurozone-greece-idUSKBN0LO0O620150222

REUTERS

U.S. refinery strike affects one-fifth of national capacity

(Reuters) - The largest U.S. refinery strike in 35 years entered its fourth week on Sunday as workers at 12 refineries accounting for one-fifth of national production capacity were walking picket lines.

Sources familiar with the negotiations said talks may resume by mid-week to end the walkout by 6,550 members of the United Steelworkers union (USW) at 15 plants, including the 12 refineries.

Representatives of both sides said no date has been set to restart negotiations, however.

The strike comes as U.S. workers seek more pay in a strengthening economy. Wal-Mart Stores Inc has said its U.S. workers will get a raise to at least $9 an hour, while West Coast port workers have reached a tentative deal for a new contract after a months-long dispute.

Source: http://www.reuters.com/article/2015/02/23/us-refineries-labor-strike-idUSKBN0LP06420150223

(raw materials / closing price /% change)

Oil 50.81 -1.97%

Gold 1,203.40 -0.12%