London Brent crude futures reached a new low since January this year, down to $57.39 a barrel (approximately 2 percent).
US light crude is knocked down to $57.18 per barrel (near 4 percent down).
Since the OPEC announced their agreement to subtract 1.2 million barrels per day starting tomorrow (the first of November), traders are waiting to see if the OPEC will truly fulfill the agreement. Barclays Capital said: "Dominant speculative sentiment remains overwhelmingly bearish. Those on the short side who are expecting global economic weakness ... and weak OPEC cohesion are unlikely to change those core views in a hurry."
"World Gold Council" reports have shown that the total gold demand from Saudi Arabia plus 5 of 6 Gulf States has increased 10 percent in the 2nd quarter. Standing at 36.8 tons. While gold sales in the UAE stand on 25.9 tons for the same quarter.
The US dollar has reached a new low for the past month against the EUR and the JPY. Traders blame the overnight release of US reports (the US consumer confidence and Chicago PMI) which turned out to be inferior to anticipated.
After the reports were released Keith Gyles at Capital Economics said:" US consumer confidence failed to rise despite the sharp decline in gasoline prices. This suggests that the housing market slump may already be having an impact. Optimists still believe that cheaper fuel will save the economy from a housing-led slowdown. Today's data is an early indication that it won't".
Forex traders are waiting for the release of the US Institute of Supply Management manufacturing statistics and for the speech by Fed chairman Ben Bernanke due later on today.
