Oil futures cheaper for a second day on the strengthening of the US dollar and renewed concerns about the global oil market glut.

The dollar index, which measures the greenback against a basket of major currencies, hit session high after the release of US consumer confidence data. The consumer confidence index from the Conference Board rose to 101.1 in August from 96.7 in July. The present situation index rose to 118.8 from 123.0, while the expectations index rose from 82.0 to 86.4. "Consumer confidence improved to its highest level in nearly a year, after a moderate decline in July - Lynn Franco the director of economic indicators in the Conference Board. Consumers estimation on current business conditions as well as conditions in the labor market was significantly more favorable than in July. The short-term expectations regarding business and employment conditions as well as prospects of individuals' income also improved, suggesting the possibility of a moderate acceleration of growth in the coming months. "

Statements by deputy oil minister of Iran Moazami that the country intends to increase the volume of oil production from 3.8 million barrels / d to 4.75 million, alos put preasure on prices. He added that by the end of this year plans to increase production to 4 mln b / d.

The cost of the October futures for WTI fell to 46.48 dollars per barrel.

October futures for Brent fell to 48.70 dollars a barrel on the London Stock Exchange ICE Futures Europe.

Gold moderately cheaper, returning to five-week low, movecaused by the strengthening of the dollar and the recent comments by Fed officials on rate hikes.

The dollar index, which shows the relationship of the US dollar against a basket of six major currencies, rose 0.5%. Generally, a strong dollar puts pressure on gold, as it reduces the metal's appeal as an alternative asset and increases the price of dollar-denominated commodities for holders of other currencies.

Today, Fischer noted that the pace of rate hikes will depend entirely on the situation in the economy. " We determine the rate based on the incoming data. I do not think that at the time when we start to raise rates, we will know whether it will be one hike or more. It all depends on what will happen in the economy ", - he said. According to the futures market, the probability of a rate hike is 24% in September and 53.6% in December.

"As investors are pricing in an increasing chance of a hike before the end of the year, gold is likely to continue to remain under pressure" - said MKS experts.

Gradually, the market's attention shifted to Friday's data on US labor market, which will help understand whether the Fed will raise rates in the near future.

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

(raw materials / closing price /% change)

Oil 46.95 -0.06%

Gold 1,327.10 0.00%