Oil prices fell markedly , dropping at the same time below $ 108 per barrel, as the higher the volume of production in Iraq and a possible improvement in US- Iranian relations have improved the outlook for supply and compensate for this upbeat economic data from China and Europe .

Note that the price of oil fell last week, after the resumption of some supplies from Libya after weeks of unrest and fear, on the background of the fact that the probability of military action by the U.S. against Syria has decreased significantly .

Prices resumed their downward trend, after Iraq , a major oil producer in OPEC , said today that it has increased production at its southern oil fields after the repair of the pipeline. We also add that the downward trend was also supported by innovative options meetings between the leaders of the United States and Iran this week.

Iranian President Hassan Rouhani will seek to set the tone for further nuclear talks with world powers that can bring relief to the tension, and improve the relationship between the countries.

In addition, we add that the course of trade affected by Chinese data that showed that this month the manufacturing PMI index increased significantly , thereby exceeded the estimates of experts , and reaching the highest level in six months, which primarily was due to the increase in new export orders.

According to the report , the September purchasing managers' index for the manufacturing sector rose to 51.2 points, compared with 50.1 in August , reaching a six-month high at the same time . Note that according to the average forecasts of experts the value of the manufacturing index was up to the level of 50.9 points.

No less important was the report on the euro area. As it became known , the preliminary consolidated production index rose in September more than expected to a 27- month high of 52.1 compared with 51.5 in August. Economists had expected a rise to 51.7 .

The index of purchasing managers in the services sector reached 52.1 compared with 50.7 in August. Activity in the services sector rose a second month in a row , has expanded at the fastest pace since June 2011 . Meanwhile , the index of manufacturing activity fell to 51.1 in September from 51.4 in August. However , industrial production increased for the third consecutive month.

The cost of the November futures on U.S. light crude oil WTI (Light Sweet Crude Oil) fell to $ 103.44 a barrel on the New York Mercantile Exchange.

November futures price for North Sea Brent crude oil mixture fell $ 1.06 to $ 107.94 a barrel on the London exchange ICE Futures Europe.

The cost of gold futures fell slightly today , by expanding the losses of the previous session , as many investors continued to weigh the Fed's comments with regard to incentives. Recall that the price of gold on Wednesday showed its largest increase in percentage terms since 2009, after the Fed decided to keep its bond-buying program unchanged, contrary to forecasts of a slight decline .

However, this increase was short-lived , as some Fed officials on Friday indicated that the central bank may slow the purchase of bonds in the near future.

Note that one of them was the head of the Federal Reserve Bank of St. Louis, James Bullard , who said the decision not to reduce the amount of bond buying was "dangerous" and next month may be a slight reduction program. The decision was " borderline " after the publication of weak data.

Bullard named October as the likely period to reduce the amount of QE, as may be published some data that will change the understanding of the prospects , and as a result , the Committee may hold a slight reduction in the volume of purchases in October. Markets should not be surprised by the decision , because the members of the Committee on Open Market repeatedly stated that the decision would be "slow" , or reduction of the program will depend on the data , "- said Bullard .

Meanwhile , we add that the decline in gold prices helped the victory of German Chancellor Angela Merkel. Note that Angela Merkel won a landslide victory over his opponent Peer Steinbrueck and his party of Social Democrats ( center-left ) , which won only 26 % of the vote . However, to obtain an absolute majority in the Bundestag Christian Democratic Party Merkel did not have any of three places. Her former colleagues in the coalition, the Free Democratic Party failed to gain 5 % of the vote to win seats in Parliament. As a result, Merkel will have to negotiate with the other party is likely to Peer Steinbrück party to form a coalition .

The cost of the October gold futures on COMEX today dropped to $ 1327.60 per ounce.