CRUDE
OIL:
WTI
fell $1.13 to 43.53 as traders booked profits as the Canadian sands wildfire
seemed to get under control today. On Sunday, cooler weather, light rain and
winds opposed to the direction of
flames
helped control the advance of the blaze that razed Alberta's oil sands
boom-town Fort McMurray.
sudden
change in oil administration in Saudi Arabia signaled a change in the goals by
the Saudi’s which might indicate a chance of success at the June 2nd meeting.
Don't
expect Saudi Arabia's new oil boss to bring big change to OPEC's June meeting,
analysts warned, after the energy power replaced its long-serving minister Ali
al-Naimi on Saturday.
Al-Naimi's
removal is less a reflection on [his] policies.
In
a far-reaching government shake-up, Saudi Arabia replaced al-Naimi, who had
been oil minister since 1995, with Khalid al-Falih, the chairman of state-owned
oil company Aramco.
The
change came after a sustained decline in oil prices; oil prices have fallen as
much as 70 percent since mid-2014 amid an energy supply surplus and a slowdown
in global demand growth.
Several
analysts are of the opinion that because Canadian crude production could come
back online in the next few days, this could again raise bearish sentiments
among oil traders, since worldwide
oil
production continues to grow despite a global glut.
GOLD:
Metal traders decided to book profits after gold was unable to
break the resistance at $1300. The Bears just tired out the Bulls as prices
turned downwards. The US dollar gained on
comments from Fed speakers who all seemed to indicate that
the Fed were still looking at rate increases as soon as June.
According to Bloomberg bullion has benefited this year from
expectations that slowing global economies will restrain the pace of U.S. rate
increases. Lower borrowing costs boost gold’s
appeal against interest-bearing assets such as bonds.
The Fed will raise rates eventually, and if we see stronger
employment data next month, then maybe you’d see them raise rates in July.”
Last Friday the Federal Reserve President for New York, William
Dudley, noted that it was still reasonable to anticipate 2 hikes in borrowing
costs in 2016, in spite of the weakest US
employment growth since September 2015.
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