25 July 2015


Crude Oil Drops as US Drillers Add Rigs
Crude oil was attempting to rise, extending yesterday’s gains, but it currently dropped, demonstrating significant losses. Baker Hughes reported that US drillers added 21 rigs last week even if face of collapsing oil prices. The news followed the report on Wednesday that showed an unexpected increase of US oil reserves and pushed prices for WTI crude below the $50 level.
Of course, signs of economic slowdown around the world were also affecting crude negatively. Fuel and energy consumption is tied to economic growth, and worsening economic conditions mean smaller demand for the commodity, and this in turn leads to lower prices.
Futures for WTI crude oil dropped 0.85 percent to $48.04 per barrel as of  GMT on NYMEX. Contract for Brent crude declined 1.16 percent to $54.63 per barrel on ICE.
Gold Spread movement,The calendar spread of Comex gold continued to slide and now standing at 0.3 levels. Indian MCX Spread for Aug-Oct stands at 217 levels.

Silver futures are expected to trade on a negative noted during the day moving in line with gold market. Weakness in base metals segment is also likely to weigh on the market. The gold silver ratio is moving in a band of 73.50 to 74.50 levels.As on Friday morning, Comex silver futures made an intraday low of $14.43 per ounce.

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