The collapse of crude oil continued Tuesday, with benchmark US closed below $ 48 a barrel for the first time since April 2009 because of concerns over Greece’s debt adds to the bearish sentiment after market overshadowed the global supply glut and an increase in the US dollar.
On the New York Mercantile Exchange, light-sweet crude for February delivery fell $ 2.11, or 4.2%, to close at $ 47.93 a barrel, its lowest close since April 2009. Brent crude for February delivery on the London-based ICE Futures Exchange fell $ 2.01, or 3.8%, to $ 51.10, also the lowest level since April 2009.
There is no compelling reason why oil prices fall further, but the current market panic look bigger. Both benchmark oil prices have fallen for six of the last seven trading sessions and declined more than 5% on Monday. Nymex crude oil fell 46% in 2014 and fell again to 10% in three trading days in 2015.
Revolution US shale exploration technologies also be a trigger factor concerns traffickers. Shale oil production boom has pushed America. This has contributed to the current oversupply of oil. So crude oil prices still seem difficult to stem the negative sentiment.
At the same session the price of gold to rise again as investors continue to monitor news about Greece and wait for the minutes of the meeting of the Federal Reserve to see the instructions on the time rate hike expected by many parties going on this year.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery fell 0.11% to $ 1,217.30 on Wednesday in early Asia. Overnight, gold futures rose for the third consecutive session, as safe-haven demand pushed up on fears that Greece may exit the euro zone if the party’s left wing anti-austerity Syriza win the elections due to be held later this month.
Investors will turn their attention to the data nonfarm payrolls on Friday for a further indication of the strength of the recovery in the labor market. Gold has dropped in 2014 amid signs the US economic recovery that could force the Fed to start raising interest rates sooner. Expectations of higher borrowing levels ahead considered bearish for gold, as the precious metal had to struggle to compete with yield-bearing assets.
ADP data scheduled for release later tonight will certainly be the focus of the traffickers. This data can be an indication for the data Nonfarm Payroll. Economists expect this data will increase that could mean bad for the price of gold.