review the oil market for 19.01.10

Dynamics
Quotes of the oil market Tuesday, January 19 on the basis of trading closed with the increase in value against positive dynamics of equity markets and adjacent areas, but also because of technical reasons.

At the New York Stock Exchange NYMEH the February futures price of U.S. light crude rose by 1.02, or 1.3%, and its price was 79.02 dollars per barrel.

The exchange ICE in London cost of Brent crude futures rose 0.53, or 0.7%, to 77.63 dollars per barrel.

Causes
Tuesday, January 19 quotes on the market of “black gold” were closed with an increase in price by the following factors: 1 - Strengthening the stock sites, where U.S. stocks rose, restoring the loss last week, as the equities of the health sector sharply increased (after the declarations of the Republicans is that they block the revision of this industry, if you win elections in the U.S. Senate), while technology companies have grown in relation to the optimistic expectations of earnings (Dow Jones industrial average - 10725.43 (115.78, or 1.09%) Nasdaq Composite - 2320.40 (32.41, or 1.42%), SP 500 - 1150.23 (14.20, or 1.25%)), 2 - positive dynamics of the neighboring markets, namely the strengthening of prices for precious metals and 3 - the technical reasons - the price of oil fell to 1.6% to 76.76 dollars per barrel, its lowest level since December 23, with the attainment of this minimum has provided an ideal opportunity to purchase for some investors, while traders covered short positions, re-buying previously sold contracts, and prices market grew. Organization of Petroleum Exporting Countries (OPEC) said Tuesday that oil prices are still vulnerable to seasonal weakness in demand. This has increased expectations that the group will keep its oil production quotas unchanged at its March meeting.

From news worth noting that the Iraqi government and Gazprom Neft signed a contract to develop fields Badr January 28, 2010. Gazprom Neft as the operator of the consortium (30%) won the tender in Iraq on oil field development Badr with 2 billion barrels of reserves. The other consortium members are Korean Kogas (22,5%), Malaysia”s Petronas (15%) and Turkish TPAO (7,5%). The Iraqi government owns 25% of the project. Gazprom Neft will receive compensation for their costs of developing the field, as well as compensation for each barrel of oil extracted in the amount of U.S. $ 5.5 (or in the form of the volume of oil). The project is designed more than 20 years.

What to expect?
The main event of today”s trading session is out of data on stocks of petroleum and petroleum products from the U.S. Department of Energy, which can set the future direction trading. Market participants expect to reduce stockpiles of distillates, but at the same time, expect growth stocks of gasoline and crude oil. Among distillates include heating oil and diesel fuel.

Why worry?
The main negative factors in the oil market are U.S. dollar and the technical picture, namely, the psychological and technical level of 85 dollars per barrel, which does not allow to pass higher oil prices, thereby encouraging market participants to lock in profits on the open long positions.

Overview of precious metals market for 19.01.10

Dynamics
Tuesday, January 19 quotes for gold and silver have completed trades with the increase in value against positive dynamics of equity markets and adjacent areas, but also because of technical reasons and because of inflation fears.

As a result of trading on the COMEX, division of the New York Mercantile Exchange (NYMEX), quotes gold futures rose by 9.50 to 1140.00 dollars per troy ounce, quotes, silver futures rose 37 cents to 18.80 dollars per ounce.

Causes
Tuesday, January 19 futures on precious metals have completed trades with the increase in value under the following factors: 1 - inflationary concerns - gold vyraslo in price due to inflation concerns in India and Britain, as well as through purchases of the metal as an asset - seekers amid fears about the financial situation of Greece, 2 - to strengthen the stock sites, where U.S. stocks rose, restoring the loss last week, as shares of technology companies and health sectors have risen sharply (Dow Jones industrial average - 10725.43 (115.78, or 1.09 %), Nasdaq Composite - 2320.40 (32.41, or 1.42%), SP 500 - 1150.23 (14.20, or 1.25%)), 3 - positive dynamics of the neighboring markets, namely, enhancing the price of oil, 4 - technical reasons, namely that the level of 1130.00 dollars survived and became the starting point of growth. Silver futures podrozhali against the background of strengthening the shares because of the wide use of this metal in industry. Silver has risen in price, as gold, as precious metal, due to purchases as an asset of refuge.

From news can note that the international (gold) reserves of Russia for the period from 1 to 8 January 2010. increased by 300 million dollars and in percentage of about 0,07% - to 440,6 billion dollars to 440.9 billion dollars. Thus, international reserves are at a level first reached in October 2007. Record-breaking - 598.1 billion dollars - the international reserves reached 8 August 2008. In general for 2009. international reserves grew by 3.17%.

What to expect?
Traditional purchase precious metals in the early years of the funds, the overall improvement in investor sentiment, as well as decrease the U.S. dollar will provide sustained support to the quotations of gold and silver. However, the situation could change dramatically if the dollar will resume its strengthening, as the inverse correlation between the dollar and the prices of precious metals continues.

Why worry?
volatile changes in the currency market may be reflected in the sharp fluctuations of prices for precious metals.

After the publication of quite good enterprise reporting U.S. indexes rose. Better the market looked like the health sector on expectations of blocking health care reform Republican senators. Worse market traded shares of banks and oil and gas sector. As a result of the auctions the index of wide market S P500 rose by 1,25% reaching a local maximum on the value of 1150 points. The graph it looks like a triple top.

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