Oil Prices Drop As Market Braces For Rising Libyan Output

CL
Oil prices dropped on Friday as the market braced for rising Libyan output, while soft Chinese service-sector data softened demand for the growth-sensitive commodity as well. Oil falls as market braces for rising Libyan output, ignores supply data Oil prices largely ignored an otherwise bullish U.S. supply report. Ongoing expectations for Libyan oil exports to resume to near normal levels sent prices falling due to the added supply they'd bring to the global market. Libyan oil operations faced glitches in the recent past due to protesters disrupting production at various oilfields. Expectations for increased exports from South Sudan also nudged prices lower. Prices also slumped after data showed that China's non-manufacturing purchasing managers' index fell to 54.6 in December from 56.0 the previous month. Also this week, data revealed that China’s final HSBC PMI inched down to 50.5 in December from 50.8 in November, which bolstered the greenback's safe-haven appeal.


Gold
Gold prices carried Thursday's gains into Friday on reports of rising physical demand in Asia, while bottom fishers snapped up nicely priced positions after the commodity suffered its worst loss in 2013 in three decades. Reports of rising demand for gold bars and jewelry in Asia sent prices spiking on Friday, which brought in bargain hunters who viewed the yellow metal as an attractive buy. Gold prices fell about 29% in 2013 amid growing expectations that the Federal Reserve will taper its bond purchases in 2014 and possibly end the program later this year. Earlier Friday, outgoing Fed Chairman Ben Bernanke said any decision to trim the U.S. central bank's USD75 billion in asset purchases this year shouldn't be interpreted as a sign that tighter monetary policy is around the corner.