Prices of oil futures declined markedly, falling at the same time below $ 61 (Brent) and $ 50 (WTI), which is associated with the strengthening dollar and worries over the level of oil reserves.

The dollar strengthened its position against a basket of major world currencies as investors assess data on US unemployment, inflation, and orders for durable goods. Recall oil prices usually fall when the US currency strengthened as the dollar-denominated commodities become more expensive for buyers in other currencies.

Market participants also continue to analyze yesterday's report on oil reserves. Recall, in the week of February 14-20 oil reserves rose by 8.4 million barrels (434.1 million barrels before), while the expected increase of 4.7 million barrels. Now stocks are at historical highs from August 1982. Oil reserves in Cushing terminal rose by 2.4 million barrels - up to 48.7 million barrels. Gasoline inventories fell by 3.1 million barrels - up to 240 million barrels. Analysts had expected a decline of 1.1 million barrels. Distillate stocks fell by 2.7 million barrels (up to 124.7 million barrels), while analysts had expected a decline of 3.3 million barrels. Utilization rate of refining capacity decreased by 1.3% to 87.4%. Analysts expected a decline of 0.5%.

"The United States can not get rid of excess oil, which translates into growth stocks and growth of the discount to Brent, - the analyst said Saxo Bank Ole Hansen. - This situation suits the OPEC countries that peg their prices to Brent".

Meanwhile, today the head of the Commodity Research Bank of America Francisco Blanch said that Brent oil and WTI in the coming weeks may go down in value to $ 30 a barrel as oil tanks are overflowing, said, "We expect a very rapid replenishment of stocks in the next few weeks "- he said, noting that the daily excess of supply over demand of oil it is about 1.4 million barrels per day.

Blanche said that if in the storage tanks over the place, prices react to it more rapidly to balance supply and demand. According to him, "this is what we expect in the coming weeks." We also recall in mid-January, Bank of America Merrill Lynch predicted a fall in prices for Brent crude to 31 dollars per barrel, WTI - up to $ 32 by the end of the first quarter of 2015.

Little support for the market to continue to provide yesterday's statement to Saudi Oil Minister Ali al-Nuaimi an increase in demand for oil in the world. He also noted that the oil market all the "easy". Saudi minister comments are very similar to the report of the Organization of Petroleum Exporting Countries, published in February.

March futures price for US light crude oil WTI (Light Sweet Crude Oil) dropped to 49.33 dollars per barrel on the New York Mercantile Exchange.

April futures price for North Sea Brent crude oil mix fell $ 0.91 to $ 60.94 a barrel on the London Stock Exchange ICE Futures Europe.

Gold prices retreated from a session high, approaching at the same time to the opening level, which was due to a significant strengthening of the dollar and the publication of the US data. The US Commerce Department reported that orders for durable goods rose in January by 2.8% after falling 3.7% in the previous month. Economists had expected the index to increase by 1.7%. Increase in orders for durable goods in the US in January was marked for the first time in three months. Orders excluding transportation equipment increased in January by 0.3% after falling 0.9%. Analysts had expected growth rate of 0.6%. Orders excluding aircraft and military equipment rose last month by 0.6% when compared to December is expected to increase by 0.4%. The fall of the index in December was 0.7%, not 0.6% as previously reported. Orders for civilian aircraft soared in January to 128.5% after falling 58.3% the previous month, orders for computers and electronics rose 1%, for industrial equipment - by 1.9%. At the same time, the volume of orders for vehicles and parts decreased by 2.9% for electrical equipment - by 3.4%.

Meanwhile, the support prices continue to recent comments by Fed chairman Yellen, which led investors to revise the expectations of a rate hike in the United States. Yellen said that economic conditions "are unlikely to" justify raising interest rates for "at least the next couple committee meetings." She added that if the economy continues to improve, as expected by the Fed, then the bank will update its strategy to further disclosure policy.

As for the situation in the physical market, the margins on the Shanghai Gold Exchange held at $ 4- $ 5 per ounce to the spot price after the resumption of the Chinese market on Wednesday. "The demand for gold in the physical market is growing again after the return of Chinese traders, which is reflected in the margins on the Shanghai Gold Exchange" - the report says Commerzbank.

Also, the data showed that China's gold imports from Hong Kong rose in January compared with the previous month, reflecting the increased demand on the eve of the Lunar New Year. Net gold imports from Hong Kong rose to 76.118 tons last month from a three-month low of 71.381 tons in December.

April futures price of gold on the COMEX today rose to 1207.10 dollars per ounce.

Oil prices are mixed in today's trading. Yesterday prices were supported by comments of Ali al-Naimi, Saudi Arabia's oil minister. He stated that markets are calm now and demand is growing. Better-than expected data from China, the world's second-largest oil consumer also supported prices. Today WTI is still under pressure after yesterday's data on U.S. stockpiles. A report from the US Department of Energy showed that during the week February 14-20 oil reserves rose by 8.4 million barrels to 434.1 million barrels, almost double the expected increase of 4.7 million barrels. Now stocks are at historical highs from August 1982.

Brent Crude added +0.52%, currently trading at USD61.95 a barrel. On January 13th Crude hit a low at USD45.19. West Texas Intermediate lost -1.02% currently quoted at USD50.47, still above USD50 a barrel.

Although prices stabilized recently worldwide supply still exceeds demand in a period of low global economic growth limiting the impact of positive macroeconomic news.

Gold further extended its rebound from 7-week lows in today's trading, now trading above the USD1,200 threshold on FED rate outlook. Yellen testified before the Senate Banking Committee in Washington on Tuesday and reiterated the statement before the House Financial Services Committee yesterday. She said it is unlikely that the Fed will raise its interest rate in "the next couple of FOMC meetings" as wage growth and inflation are too low at the moment. A broadly weaker U.S. dollar supported the price.

Markets remain cautious about the Greek debt deal bolstering demand for the haven asset. The IMF and the ECB warned that the reform plans are not detailed enough and Athens will have to take further steps to ensure further bailout releases.

A stronger U.S. dollar and the prospect for higher U.S. rates recently weighed on the precious metal as the precious metal is dollar-denominated and not yield-bearing.

The precious metal is currently quoted at USD1,218.20, +1,15% a troy ounce. Gold fell 2.3% last week, a fourth straight weekly loss. On Thursday the 22nd of January gold reached a five-month high at USD1,307.40.

BLOOMBERG

Yellen Says 'Audit the Fed' Would Politicize Monetary Policy

(Bloomberg) -- Chair Janet Yellen strongly criticized a proposal to allow congressional audits of the Federal Reserve's monetary policy and lawmakers from both parties agreed that it was a bad idea to expose the Fed to political meddling.

"Audit the Fed is a bill that would politicize monetary policy, would bring short-term political pressures to bear on the Fed," Yellen said Tuesday during testimony to the Senate Banking Committee. She said such a law isn't needed because the Fed already is "extensively audited."

Republicans who now control both chambers of Congress for the first time in eight years have proposed bills to put the Fed under more scrutiny.

Source: http://www.bloomberg.com/news/articles/2015-02-24/yellen-says-audit-the-fed-would-politicize-monetary-policy

REUTERS

German conservatives back Greek aid extension in test vote

Reuters) - An overwhelming majority of German Chancellor Angela Merkel's conservatives supported an extension of the Greek bailout in a test ballot on Thursday, one day before a vote in the Bundestag lower house of parliament, according to participants.

In the test ballot, 22 lawmakers in the conservative bloc opposed the extension and five abstained. In total, there are 311 lawmakers in the bloc, which includes members of the chancellor's Christian Democratic Union (CDU) and its sister party, the Bavarian Christian Social Union (CSU).

Source: http://www.reuters.com/article/2015/02/26/us-eurozone-greece-germany-idUSKBN0LU0MQ20150226

BLOOMBERG

The Japanese Aren't Benefiting from Cheaper Oil - The Yen Is the Reason Why

Spare a thought for Japan -- the nation imports almost all its energy and stood to make windfall gains from the collapse in oil prices, only to see the benefits slip away as the yen slumped to near seven-year lows.

This means that Japanese consumers and companies aren't getting as big a boost as in the U.S. and elsewhere, even as the government is counting on them to increase spending to help boost an economy recovering from a recession.

Brent, the benchmark contract for more than half the world's oil, has fallen more than 40 percent from a June peak, while gasoline in Japan dropped just 11 percent over the same period, according to data from the economy ministry. The yen has weakened more than 14 percent against the dollar over that period, making imports more expensive.

Source: http://www.bloomberg.com/news/articles/2015-02-26/oil-s-impact-muted-by-yen

(raw materials / closing price /% change)

Oil 50.99 +3.47%

Gold 1,203.80 +0.19%