Oil futures rose about 1.5 percent, extending the previous session's rally, which was caused by the news of an agreement by OPEC to curb oil production.

OPEC participants after six-hour talks said on the achievement of mutual understanding, but work on the details of reduction plan had been postponed until November. According to the source, OPCE will set up a committee that will determine how much each country will reduce. Production will be limited to the level of 32.50 mln barrels per day compared to the current 33.24 million barrels of oil per day. Once the new production ceiling is reached, OPEC made a proposal of cooperation to non-OPEC producers.

However, despite the positive outcome of the OPEC meeting, investors are not convinced that the terms of the agreement will be respected. The market is also questioned the adequacy of the current OPEC influence, given the high supply of oil from countries not members of the cartel.

In addition, the dynamics of trade have continued to influenced by yesterday's mixed data from the US Department of Energy, which showed that oil inventories unexpectedly declined, but gasoline inventories rose. Recall, for the week September 17-23, oil reserves fell by 1.9 mln barrels to 502.7 million barrels. The experts predicted an increase of 3.0 million barrels. Gasoline inventories rose by 2 million barrels to 227.2 million barrels.

The cost of the November futures for US light crude oil WTI (Light Sweet Crude Oil) fell to 47.82 dollars per barrel on the New York Mercantile Exchange.

November futures price for North Sea petroleum mix of mark Brent fell to 49.95 dollars a barrel on the London Stock Exchange ICE Futures Europe.

The price of gold fell slightly updating yesterday's low, move caused by the strengthening of the US currency after positive data on US GDP and the labor market.

The dollar index, which measures the dollar against vs a basket of currencies of six countries, rose to a session high of 95.62 after stronger than expected US GDP data and the number of initial applications for unemployment benefits. As is known, the strengthening of the US currency negatively affects the gold, making it more expensive for holders of foreign currencies

The Commerce Department said, the US economic growth was less sluggish than previously thought in the second quarter, as exports rose more than imports, and the companies raised investment, giving encouraging signs for the economic outlook. GDP grew by 1.4 per cent per annum. The result was compared with the rate of 1.1 per cent, which it reported last month, above analysts' expectations.

The Labor Department reported that initial applications for state unemployment benefits rose by 3,000 and reached a seasonally adjusted 254,000 for the week ended September 24th. Economists had expected the figure at 260 000. The four-week moving average of initial claims fell by 2250 to 256 000. Continuing claims fell by 46,000 to 2.062 million in the week ending 17 September.

The cost of the October futures for gold on the COMEX fell to $ 1317.4 per ounce.

This morning, the New York futures for Brent have fallen 0.30% to $ 46.90 and crude oil futures WTI have fallen in price by 0.69% to $ 48.88 per barrel. Thus the black gold fell slightly, correcting after yesterday's sharp rise against the background of the unexpected decision of OPEC to limit production. As Reuters reports, the participants of the OPEC meeting in Algeria have agreed to limit the production of oil at the level of 32.50 million barrels a day, starting in November this year. Now the cartel produces 33.24 million barrels of oil per day. A specific production levels for each of the countries belonging to the organization will be agreed at the OPEC meeting in November.

• OPEC says it will limit output to 32.5 to 33 mln bpd (this compares to the most recent known group production at 33.24 mln bpd)

• So, that's a reduction of about 700K barrels per day 9depending on where in the range the cut comse to)

• Now OPEC will try to reach an agreement with non-OPEC producers

• A committee has been set up to choose how the cut will be allocated between members

• The committee will report in November

(raw materials / closing price /% change)

Oil 47.16 +0.23%

Gold 1,324.90 +0.09%