(raw materials / closing price /% change)

Light Crude 75.58 +0.15%

Gold 1,193.90 +0.25%

Oil prices rose modestly today that marked the first time in four sessions, as investors try to assess the potential outcome of the OPEC meeting, which will take place next week.

Experts note that the main producers of OPEC do not want to reduce production quotas, and other members of the cartel, including Venezuela, called for measures to stabilize oil prices. On the eve of the president of Venezuela, Nicolas Maduro called a fair price for oil. "We say that the price of $ 100, or about 100 - the fair, and it took the world economy", - said the head of state. According to him, such a price is a guarantee of stability, diversification of investments in the oil industry on a global level.

Morgan Stanley analysts pointed out that the probability that the leadership of OPEC still decide to cut production, has recently increased.

"The market is waiting for the Vienna meeting of any changes - said a senior analyst at Tradition Energy Gene MakDzhillian. - OPEC must do something. The market is still under pressure, however nearing its bottom. "

Meanwhile, the control of OPEC from Libya and planning director at the Ministry of Petroleum Industry Samir Kamal said that OPEC countries at the meeting next Thursday agreed to reduce production to the limit set by the cartel of 30 million barrels per day. This will mean a reduction in production at 250-600 thousand. Barrels per day in an attempt to maintain the price of oil, which fell to a minimum of 4 years.

Support prices have also speculation that the strong economic growth in the US will increase demand. Today's data showed that home sales in the secondary market rose in October, exceeding forecasts of experts in this case. Last - a sign that the recovery in the housing market is regaining strength. National Association of Realtors (NAR) reported that seasonally adjusted sales of existing homes rose 1.5% last month, reaching an annual rate of 5.26 million. Units. The pace of sales for September were revised up to 5.18 million. With 5.17 million. Economists had expected housing sales amount to 5.16 million. Units. Compared to October last year, sales of existing homes rose 2.5% recorded in this first annual increase since the beginning of this year. We also add that the pace of sales in October were the highest since September 2013.

Meanwhile, Conference Board said its index of leading indicators (LEI) in the United States rose 0.9 percent in October to 105.2 (2004 = 100), after increasing 0.7 percent in September, and zero change in August . Expected to increase by 0.6 percent. Meanwhile, the coincident index increased 0.1 percent in October to 110.2 (2004 = 100), after increasing 0.3 percent in September. The lagging index decreased 0.1 percent in October to 124.9 (2004 = 100), after increasing 0.1 percent in September.

Cost January futures on US light crude oil WTI (Light Sweet Crude Oil) rose to 75.07 dollars a barrel on the New York Mercantile Exchange.

January futures price for North Sea petroleum mix of mark Brent rose $ 0.53 to $ 78.60 a barrel on the London exchange ICE Futures Europe.

Gold futures rose, restoring much of the lost positions yesterday, amid speculation that the Fed will raise interest rates as planned.

Recall yesterday presented minutes of the meeting FOMC, showed that Fed officials generally agreed that the economy is improving, and there is no more need to use tools such incentives as buying assets, but fears persist that inflation expectations may decrease. While a protocol is not further clarified regarding the possible timing recovery rates, the markets continue to bet on what the US central bank will raise rates in about September 2015. Expectations of growth rates on loans are putting pressure on gold as a precious metal hardly competes with the yield of interest-earning assets at higher rates.

"Expectations of rising interest rates in the United States will continue to put pressure on the gold market," - said Tommy Capalbo, a broker at Newedge Group. "We can see some support from physical demand during the holiday season, but in the long run the price of the precious metal will decline."

Focus also remains a referendum in Switzerland. Recall in Switzerland November 30 will be a referendum on a proposal to ban the country's central bank to sell gold reserves and oblige him to keep at least 20% of assets in gold, compared with 7.8% in October. According to a survey of public opinion, the proposal is 38% of the Swiss compared to 44% in October. "The referendum was the last week of the only bright spot for gold, and investors' expectations have grown, but a new poll shows that the likelihood of adoption of this proposal is reduced," - said a trader at precious metals.

We also learned that the world's largest reserves of the gold-traded exchange-traded fund SPDR Gold Trust on Wednesday fell 0.3 percent to 720.91 tons, almost returning to six-year low.

The cost of December gold futures on the COMEX today rose to 1189.60 dollars per ounce.

Oil prices declined in today's session after data on China's and Eurozone's PMI fuelled concerns about global economic growth with Brent Crude trading -0.32% at USD77.85 a barrel and West Texas Intermediate Crude losing -0.31% currently quoted at USD74.35. Markets are awaiting the release of U.S. data on initial jobless claims, consumer price indices, existing home sales and the Philadelphia Fed Manufacturing Survey later in today's session.

Increasingly weak oil prices which have fallen by almost a third in five months add further pressure on the leading OPEC members Saudi Arabia and Kuwait that still seem resisting calls from other members to cut output. The OPEC with its 12 member countries responsible for 40% of world's oil production is scheduled to meet in Vienna on November 27 to discuss 2015 production target and whether to adjust the current volume of production at 30 million. B / d at the beginning of 2015.

Gold, currently trading below the key-level of USD1200.00 a troy ounce recouped some of its losses after the minutes of the Federal Reserve's October policy meeting were published yesterday. Gold will remain under pressure as the world's largest economy's is recovering and U.S. policy makers will have to raise interest rates sooner or later. A stronger U.S. dollar weighs on gold. No support comes from a poll showing softer support for the Swiss referendum that would force the SNB to increase their holdings in physical gold significantly from 7.8% to 20% of its total assets.

GOLD currently trading below USD1,200.00

BLOOMBERG

Yellen Gets That Sinking Feeling Greenspan Once Knew

Alan Greenspan couldn't control long-term interest rates a decade ago, and bond investors are betting Janet Yellen's luck will be no better.

When then-Federal Reserve Chairman Greenspan raised the benchmark overnight rate from 2004 to 2006, long-term borrowing costs failed to increase, thwarting his attempts to tighten credit and curb excesses that contributed to the worst financial crisis in 80 years.

Source: http://www.bloomberg.com/news/2014-11-19/yellen-inherits-greenspan-s-conundrum-as-long-rates-sink.html

REUTERS

Oil price rout to curb U.S. drilling costs even with mega merger

Low oil prices that threaten producers' profits may be a boon in one way, as they force service companies to keep prices low for the drill bits, cement and piping for oil extraction, even if two of the largest providers of such products merge.

Halliburton Co, said on Monday it will buy Baker Hughes Inc, in a $35 billion deal that would create an oilfield services company to take on global oil services leader Schlumberger NV.

Some experts have raised concerns that the deal, which would merge the world's second- and third-largest service companies, will reduce competition and potentially raise the price of materials vital for drilling.

Source: http://www.reuters.com/article/2014/11/20/us-bakerhughes-offer-drillingcosts-analy-idUSKCN0J22Q120141120

REUTERS

China factories stall; Japanese exports enjoy rare bounce

China's factories looked to have hit an air pocket in November as a private survey showed output falling for the first time in six months, adding to concerns about slowing economic momentum and to the case for further policy easing from Beijing.

Yet there was a rare glimpse of good news from Japan, which reported surprisingly strong growth in exports for October, a shift that should get a boost from the latest dive in the yen.

Source: http://www.reuters.com/article/2014/11/20/us-global-economy-idUSKCN0J407V20141120