(raw materials / closing price /% change)

Light Crude 73.49 -0.27%

Gold 1,196.50 -0.01%

West Texas Intermediate fell after a government report showed that U.S. inventories climbed for the seventh time in eight weeks.

Stockpiles rose 1.95 million barrels to 383 million in the week ended Nov. 21, the Energy Information Administration said. A 250,000 barrel supply increase was projected, according to the median of responses in a Bloomberg survey. Brent oil dropped in London after Saudi Arabia's oil minister said prices will stabilize on their own before an OPEC meeting tomorrow.

WTI for January delivery declined 59 cents, or 0.8 percent, to $73.50 a barrel at 10:31 a.m. on the New York Mercantile Exchange. The contract dropped to $74.09 yesterday, the lowest close since September 2010.

Brent for January settlement slipped 70 cents, or 0.9 percent, to $77.63 a barrel on the London-based ICE Futures Europe exchange.

U.S. crude output rose 73,000 barrels a day to 9.08 million in the latest week, according to the EIA, the Energy Department's statistical arm.

Stockpiles at Cushing, Oklahoma, the delivery point for Nymex futures, rose 1.33 million barrels to 24.6 million, the highest since April.

Gasoline supplies increased 1.83 million barrels to 206.4 million. Stockpiles were projected to have climbed by 1.5 million barrels, according to the median of 11 analyst responses in the Bloomberg survey. Distillate inventories fell 1.65 million barrels to 113.1 million, a six-month low.

Gold prices show a decrease, despite the publication of weak US economic data on unemployment and orders for durable goods.

US Labor Department reported that the number of individuals filing for initial applications for unemployment benefits last week rose by 21,000, reaching a 11-week high 313000. Analysts had expected last week, the number of applications decrease by 5,000 to 287,000.

The number of Americans who applied for the first time for unemployment benefits rose above 300,000 for the first time in 11 weeks, indicating that the labor market recovery is losing momentum.

A separate report showed that orders for durable goods rose by a seasonally adjusted 0.4% last month compared to expectations for a decline of 0.4%. The volume of orders for durable goods excluding transportation fell by a seasonally adjusted 0.9% in October, confounding the forecast growth of 0.5%.

Also, the Commerce Department reported that personal spending rose last month by 0.2%, which was below the expected increase of 0.4%, while in October, personal income rose 0.2%, confounding projected growth of 0 4%.

The main index for personal consumption expenditures rose in October to an annual rate of 1.6%, higher than expected growth of 1.5%, after rising 1.5% in the previous month.

The Federal Reserve uses the index for personal consumption expenditures as a tool to determine whether to raise or lower interest rates to keep inflation at just below 2%.

Gold prices are likely to remain vulnerable in the short term amid signs that the strengthening of the US economic recovery will push the Fed to more rapid and sharp increase in interest rates than expected.

Expectations of growth rates on loans put pressure on gold as a precious metal with difficulty competing with the yield of interest-earning assets at higher rates.

The cost of the December gold futures on the COMEX today fell to 1193.70 dollars per ounce.

Oil prices recovered a little from their 4-year lows in today's session with Brent Crude trading +0.49% at USD78.71 a barrel and WTI Crude gaining +0.26% currently quoted at USD74.28. Market participants are awaiting the outcome of the OPEC meeting, which will take place tomorrow in Vienna. Saudi Arabia signalled today that a major change in output is not likely. Oil Minister Ali al-Naimi said he expects oil prices to stabilize itself eventually. As talks over the Iranian atomic program ended with no result western sanctions will not be relieved which keeps Iran from selling its oil - relieving oil prices a little. Russia's Rosneft CEO Igor Sechin said that yesterday that there is no critical oversupply and that Russia would not need to cut production even if oil prices decline below USD60 a barrel.

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 as they fear losing market shares to U.S. shale drillers.

Gold, currently trading below the key-level of USD1200.00 a troy ounce as investors are awaiting key U.S. economic data later in the day for further indications on the strength of the world's largest economy and when the FED will change its monetary policy. A stronger U.S. dollar and higher interest rates are considered bearish for the precious metal. Traders also keep an eye on the Swiss referendum on SNB's gold reserves scheduled for November 30.

GOLD currently trading below USD1,200.0

BLOOMBERG

EU Finds Seed Money for $392 Billion Investment Plan

The European Commission today will propose a 315 billion-euro ($392 billion) investment plan based on guarantees and a small amount of seed money in order to offer European Investment Bank funds to a wider range of projects.

The EIB will contribute 5 billion euros in start-up cash, accompanied by 16 billion euros in European Union guarantees, according to the plan, which commission President Jean-Claude Juncker will unveil in Strasbourg, France. The start-up money, which is expected to have an impact of 15 times its size, will serve as capital for a new EIB unit that can share risk with private investors.

Source: http://www.bloomberg.com/news/2014-11-25/eu-finds-seed-money-for-392-billion-investment-plan.html

BLOOMBERG

Oil Volatility Here to Stay Regardless of OPEC Decision

Whatever the outcome of tomorrow's OPEC meeting, options traders are betting on oil-price swings.

That's because the decision from the Organization of Petroleum Exporting Countries isn't likely to make much difference. Slowing global demand and a U.S. shale-drilling boom has created a glut that won't fade any time soon, said Torbjoern Kjus of DNB ASA in Norway.

Source: http://www.bloomberg.com/news/2014-11-26/oil-volatility-here-to-stay-regardless-of-opec-decision.html

REUTERS

Russian c.bank to move towards rate cut after curbing inflationary expectations

Nov 26 (Reuters) - Russia's central bank will move towards cutting rates after it stabilises inflationary expectations, First Deputy Governor Ksenia Yudayeva said on Wednesday.

Annual inflation has risen to more than 8 percent because of a weaker rouble and an import ban on some Western food imports, put in place in retaliation to Western sanctions over Russia's role in the Ukraine crisis.

Source: http://www.reuters.com/article/2014/11/26/russia-cenbank-inflation-idUSL6N0TG0BU20141126