Brent crude and West Texas Intermediate continue to slump as Saudi Arabia's new King Salman assures a smooth transition and reaffirms that there will be no change in Saudi Arabia's policy towards cuts in production. Ali al-Naimi will stay oli minister. As the global glut persists Brent Crude lost -1.68%, currently trading at USD47.97 a barrel, far below the important USD50 level. On January 13^th Crude hit a low at USD45.19. West Texas Intermediate declined by -1.62% currently quoted at USD44.85. Data published on Friday showed that U.S. and Chinese stockpiles increased. U.S. stockpiles climbed to a record for December since 1930.

Oil prices fell by nearly 60 percent over the past six months, and both key brands of oil are currently trading below $ 50 a barrel as the worldwide supply 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.

Gold prices declined today as investors assess the political consequence after trading close to five-month highs earlier supported by the outcome of the Greek elections s. Increasing uncertainty over the political and economic future of Greece, a possible exit from the Eurozone, and the Eurozone as a whole lend support to the precious metal. The anti-austerity party Syriza won a decisive victory within 2 seats of the absolute majority. Alexis Tsirpas, the new Prime Minister, has pledged to keep Greece within the monetary union but wants to renegotiate Greek debt.

Gold prices rose nearly 9 percent this year, after declining for two consecutive years. Speculations that the FED will hold back its benchmark interest-rate hike till the end of the year further helped gold but the forecast for the current year remains uncertain.

The precious metal is currently quoted at USD1,282.50, -0,93% a troy ounce declining from a daily high at USD1,298,90. On Thursday last week gold reached a five-month high at USD1,307.40.

(raw materials / closing price /% change)

Light Crude 45.29 -0.66%

Gold 1,292.60 -0.26%