Oil prices were getting back on track today after one of the worst weeks in months thanks to OPEC comments that suggest the members and non-OPEC countries may take further action to restore market balance in the long term. Oil facilities in the Gulf of Mexico are resuming their operations after Hurricane Nate had caused the shutdown of over ninety percent of crude production in the area.
“Oil is having trouble to find direction. Mixed signals keep investors busy changing their minds,” said Hans van Cleef, senior energy economist at ABN Amro. “There is a good chance that we will continue to trade a bit sideways in the coming weeks up to the OPEC meeting.”
On the energy market, oil prices fell on Friday, ending the rise in the Brent price. Crude oil lost 2.4% of its value and was set at $ 55.62 a barrel. Lightweight crude oil has adjusted its price by 3%, setting at $49.29 a barrel. For precious metals, gold jumped from its 2-month low on Friday as the price change movement was influenced by the Russian report on North Korea’s missile threats and the negative reaction of the dollar.
Gold rose 0.54% to $1 274.92 per troy ounce. As the dollar moved down, the precious metals, denominated in green money, rose. On a weekly basis, the price of gold fell by 0.5% which is the fourth week of decline – the longest rise in weekly losses this year. Silver rose 1.1 percent to 16.75 dollars an ounce after realizing a two-month bottom of $ 16.30 per troy ounce. Platinum rose 0.08% to 910.24 dollars an ounce after falling to 899.50 dollars an ounce, which is the lowest price from July 12 until now.
In Asia, Australian SPI futures were 0.34% lower at 5.691 points. Markets in Japan, South Korea and Taiwan are closed due to national holidays in their respective countries. Investors are expected to focus on China. After the country’s one-week holiday, called the Golden Week, the continental markets have resumed their trade. The results of the Caixin index were announced. Despite the negative data for the index, the result did not particularly affect the price of the Chinese yuan.
More important economic news today will be related to Europe. The results for the German industrial sector for September are expected, as well as a statement by Sabine Lautenschlager, ECB member of the board of directors of the European Central Bank, which is likely to be related to discussing the future monetary policy of the European Union.