Oil prices fell on concerns over the global oil oversupply. According to a senior Iraqi official, the country plans to boost its oil output to around 4 million barrels a day this year, up by around 200,000 - 300,000 barrels from current levels.

Saudi Arabian Oil Co. (Saudi Aramco), the state-owned oil producer, Chairman Khalid al-Falih said on Monday that the company will not cut its investments despite low oil prices, adding that the company formulated a new strategy. Al-Falih pointed out that the company can sustain low oil prices for a very long period.

The Organization of Petroleum Exporting Countries (OPEC) Secretary-General Abdalla El-Badri said on Monday that the oil market will start to balance this year. The OPEC expects the oil demand to rise to about 1.3 million barrels a day this year, while output of non-OPEC members is expected to drop by about 660,000 a day. El-Badri noted that OPEC and non-OPEC oil producers should cooperate in balancing the oil market.

WTI crude oil for March delivery declined to $30.76 a barrel on the New York Mercantile Exchange.

Brent crude oil for March decreased to $30.93 a barrel on ICE Futures Europe.

Gold price rise on concerns over the slowdown in the global economy and on a weaker U.S. dollar.

Market participants are awaiting the release of the Fed's interest rate decision on Wednesday. Analysts expects the Fed to keep its interest rate unchanged after the interest rate hike in December.

February futures for gold on the COMEX today increased to 1106.20 dollars per ounce.

The Organization of Petroleum Exporting Countries (OPEC) Secretary-General Abdalla El-Badri said on Monday that the oil market will start to balance this year. The OPEC expects the oil demand to rise to about 1.3 million barrels a day this year, while output of non-OPEC members is expected to drop by about 660,000 a day.

El-Badri noted that OPEC and non-OPEC oil producers should cooperate in balancing the oil market.

Saudi Arabian Oil Co. (Saudi Aramco), the state-owned oil producer, Chairman Khalid al-Falih said on Monday that the company will not cut its investments despite low oil prices, adding that the company formulated a new strategy.

Al-Falih pointed out that the company can sustain low oil prices for a very long period.

He noted that he expects moderate oil prices as oil demand will rise.

The oil driller Baker Hughes reported on Friday that the number of active U.S. rigs declined by 5 rigs to 510 last week. It was the lowest level since April 2010.

Combined oil and gas rigs declined by 13 to 637.

Rating agency Standard & Poor's (S&P) said on Friday that it could downgrade sovereign debt ratings of oil-exporting countries this year as oil prices continued to decline.

"We had an important number of downgrades last year in Africa, the Middle East and the CIS, and if our outlooks continue to perform as an indicator of where the ratings may next go, more might be coming up this year," S&P's EMEA head of sovereign ratings Moritz Kraemer said in an interview with Reuters.

West Texas Intermediate futures for March delivery rose to $32.52 (+1.03%), while Brent crude advanced to $32.68 (+1.55%) on Monday morning extending Friday's gains after a snowstorm covered the East Coast of the U.S. boosting demand for oil for heating.

On Friday oil prices rose due to short-covering. Expectations of further stimulus from central banks of Japan and the euro zone support crude too because more stimulus suggests better demand.

Gold is currently at $1,102.00 (+0.52%). The precious metal climbed as U.S. consumer price inflation faded decreasing chances for a Federal Reserve's rate hike in March. Economists surveyed by Reuters now expect the Fed to raise interest rates three times this year rather than four.

Gold gained amid a softer dollar even after stocks rallied.

According to U.S. Commodity Futures Trading Commission, the net-long position in gold futures and options rose to 1,934 contracts in the week ending January 19 from 902 in the previous week.

(raw materials / closing price /% change)

Oil 32.38 +0.59%

Gold 1,097.90 +0.15%