(raw materials / closing price /% change)

Light Crude 55.35 -1.00%

Gold 1,193.80 -1.15%

Oil prices are mixed, but remain near multi-year lows after, due to the statement by the Minister of Energy UAE, expectations of economic data on China and the forthcoming meeting of the Fed.

Recall UAE Energy Minister Mohammed Suhail al-Mazrui said the Organization of Petroleum Exporting Countries (OPEC) will not back down from its decision to keep oil production quotas, even if oil prices fall to $ 40 per barrel. The minister said that OPEC will wait at least three months prior to the convening of an extraordinary meeting. Previous OPEC meeting held in Vienna on 27 November next is scheduled for June 5th. "We are not ready to change his mind just because prices have fallen to $ 60 or $ 40 per barrel - said S.Aliyev-Mazrui at a conference in Dubai. - We do not targetiruem any price, the market will stabilize itself." According to the representative of the United Arab Emirates, the current situation does not require an emergency meeting of OPEC.

The course of trading also influenced today's message from the Central Bank of China, which stated that China's economic growth to slow again in 2015, falling to 7.1% from 7.4% this year. "The Chinese economy is undergoing a period of transformation, which leads to a slowdown in its development", - said the publication of data, chief economist of the People's Bank of China Ma Jun. He said the slowdown in the first place happens due to lower inflows to the Chinese real estate market. "However, despite this, the employment rate and the price level during the year will remain stable, the Chinese economy will be more prerequisites for sustainable growth," - said Ma Jun.

The report of the People's Bank of China noted that due to the recovery in global growth at the end of next year we can expect an increase of Chinese exports. However, the decisions taken by the Fed are a threat to the anticipated growth.

Investors remained cautious ahead of the upcoming policy meeting on Wednesday, the Fed, as the continuing speculation about the prospect of a rate hike in the US next year, fueled by expectations that the US central bank may adjust their forecasts.

Cost of January futures for US light crude oil WTI (Light Sweet Crude Oil) dropped to 56.45 dollars per barrel on the New York Mercantile Exchange.

January futures price for North Sea petroleum mix of Brent rose $ 0.05 to $ 61.11 a barrel on the London Stock Exchange ICE Futures Europe.

Gold prices declined markedly today, approaching at the same time to the level of $ 1,200 per ounce and has lost much of the increase last week. Recall precious metal jumped nearly 3% last week as steep losses on oil and stock markets fueled increased demand for safe assets amid lingering concerns about the global economic slowdown.

The course of today's trading affects the strengthening of the US dollar and expectations of the upcoming Fed meeting, on which market participants are hoping to get clues about the timing of rate increases. Experts specializing in the projections of US policy, note that the Fed could remove the phrase "extended period" and replace it with the phrase about the slow rate increase, depending on the incoming data. However, do not reach the target level of inflation in the United States could force the monetary authorities to remain faithful to the formulation of the long-term. With recent indicators on employment growth markets rely on central bank forecasts increase in GDP for 2015 and 2016., As well as reducing the forecasts for inflation and unemployment.

Little impact on prices also helped US data showing that industrial production rose to a seasonally adjusted 1.3% in November. This is the largest increase since May 2010. Economists had expected an increase of 0.8%. Another sign of the gain was a small upward adjustment of data on industrial production in the last three months. In November, manufacturing output rose by 1.1%, and on a broad basis. Production of consumer goods increased by 2.5%, and the largest growth rate since August 1998. In the municipal sector issuance jumped 5.1% against the cold weather last month. In the mining sector, however, production decreased - by 0.1%. Capacity utilization rose to 80.1%. This is higher than 79.4%, mentioned in the consensus forecast, and the highest rate since March 2008.

Meanwhile, investors remain cautious about the stagnating economy and the euro zone after the unexpected decision of the Greek government to postpone the parliamentary vote on the election of the president on December 17, which is two months ahead of schedule.

The cost of the December gold futures on the COMEX today fell $ 12.9 to 1209.10 dollars per ounce.

Brent crude and West Texas Intermediate are trading higher after marking new 5-1/2 year lows in early trading. Brent Crude is up +1.15% trading currently at USD62.56 a barrel and West Texas Intermediate added +0.66% currently quoted at USD58.19. Both benchmarks have collapsed about 20 percent since Nov. 26, the day before the Organization of Petroleum Exporting Countries agreed to leave its production limit unchanged at 30 million barrels a day. Saudi Arabia, Iraq and Kuwait, the group's three biggest members, this month deepened discounts on shipments to Asia, bolstering speculation that they're fighting for market share.

Today prices were supported after Libya announced today it was unable to load at two ports. Markets remain under pressure after Friday's forecasts of the IEA that global demand growth will decline. The IEA cut its 2015 global oil demand growth forecast for the fourth time in five months by 230,000 barrels per day to 0.9 million barrel per day due to oversupply and a weaker global economy. OPEC gave the same forecast, the lowest since 2003, in its monthly report on Dec. 10. Markets will remain volatile before the FED's meeting and China data due on Tuesday.

Gold prices fell in today's trading, cutting previous weeks gains that were fuelled by slumping oil prices and a decline in global stock markets, amid speculations the FED is going to raise interest rates as the U.S. economy grows. Investors are looking forward to the upcoming FED meeting later in the week on Wednesday. The precious metal is currently quoted at USD1,210.20 or -0,91 % a troy ounce, still above the important key-level of USD 1200.

GOLD currently trading at USD1,210.20

REUTERS

Abe coalition secures big Japan election win with record low turnout

TOKYO, Dec 15 (Reuters) - Japanese Prime Minister Shinzo Abe, brushing aside suggestions that a low turnout tarnished his coalition's election win, vowed on Monday to stick to his reflationary economic policies, tackle painful structural reforms and pursue his muscular security stance.

But doubts persist as to whether Abe, who now has a shot to become a rare long-lasting leader in Japan, can engineer sustainable growth with his "Abenomics" recipe of hyper-easy monetary policy, government spending and promises of deregulation.

Source: http://www.reuters.com/article/2014/12/15/japan-election-idUSL3N0TY0D220141215

BLOOMBERG

Draghi's QE Battle Almost Won as Economists See Action

The battle over whether to start quantitative easing in the euro region is all but won, economists say.

More than 90 percent of respondents in Bloomberg's monthly survey predict the Bank will begin large-scale buying of government bonds next year, up from 57 percent last month. An announcement will most likely come in the first quarter, with any decision taken against the objections of some policy makers, the poll of 55 economists showed.

Source: http://www.bloomberg.com/news/2014-12-15/draghi-s-qe-battle-almost-won-as-economists-see-action.html

BLOOMBERG

Hedge Funds' Bullish Gold Bets Defy Goldman Outlook: Commodities

Hedge Funds are the most bullish on gold since August, defying Goldman Sachs Group Inc.'s prediction that the rally in prices will fade.

The net-long position in New York futures and options climbed for a fourth week, the longest stretch of increases since July, government data show. Futures jumped 2.7 percent last week, the most since June, as a plunge in global equities erased about $2 trillion from the value of stocks.

Source: http://www.bloomberg.com/news/2014-12-14/hedge-funds-bullish-gold-bets-defy-goldman-outlook-commodities.html