Oil prices rose slightly today ahead of tomorrow's meeting of the Federal Open Market Committee, which is expected to be able to shed light on the future monetary policy of the United States. It is worth noting that at the moment there is no clarity as to how to proceed with the policy of quantitative easing. Recall that the program in the amount of $ 85 billion per month so far supported the U.S. economy, which is the world's largest consumer of oil. Experts point out that stronger economic growth usually leads to a greater use of energy companies and an increase in demand for oil from motorists.

Oil traders pay close attention to the actions of the central bank during the period of recovery of the U.S. economy. But most of the attention was drawn to the speech of Fed Chairman Ben Bernanke in May, during which he said that the central bank can reduce the size of the program by buying bonds in the next few meetings against the gradually improving U.S. economy.

We add that the rise in prices also contribute to concerns about global supply disruptions, after the United States decided to play a more active role in the Syrian conflict. Recall that last week, the U.S. administration decided to arm the Syrian rebels. Meanwhile, Russia continues to support Syrian President Bashar al-Assad. Although Syria is not a major producer of oil, and military expansion in the country has the potential to spill over into neighboring countries that disrupt oil supplies in the Middle East.

The cost of the July futures on U.S. light crude oil WTI (Light Sweet Crude Oil) rose to 97.95 dollars a barrel on the New York Mercantile Exchange.

July futures price for North Sea Brent crude oil mixture rose 2 cents to $ 106.02 a barrel on the London exchange ICE Futures Europe.

Gold prices declined significantly, which was associated with the expectations of tomorrow's meeting of the Federal Reserve System, which is expected, the market will have more clarity on the prospects for monetary policy. Add that trades in the U.S. currency and the stock markets are in a narrow range, as uncertainty over the future of U.S. monetary stimulus program investors is the focus of that, just, and helps push gold prices downward.

It is worth noting that the Fed meeting, which is scheduled for this week, has caused much speculation as to what the Fed can reduce the size of its asset-purchase program, which now amounts to $ 85 billion a month.

Recall that the program, known as quantitative easing, aimed at stimulating economic growth in the United States, has helped raise the price of gold to record levels in recent years, keeping the pressure on long-term interest rates and stoking fears about inflation. Fears that the amount of the program can be reduced to help lower prices by 18% this year. Many experts point out that the decline was much larger than many would expect.

We add that the data presented today showed that physical demand in India and China, which are the largest consumers of gold, down from peak levels after the sharp sell-off in April. Any signs of a significant slowdown in demand in the Chinese market would be a big blow to the value of gold, as investors expect that China will be able to compensate for the weaknesses of buying from India. Note that the demand in India has declined markedly after the government increased the duty on imports in order to reduce its current account deficit.

The cost of the August gold futures on COMEX today dropped to 1361.60 dollars an ounce.

Change % Change Last

GOLD 1,381.80 -5.50 -0.40%

OIL (WTI) 97.82 -0.03 -0.03%