By: Mahmoud Gamal

Mubasher: Oil prices retreated 3% on Monday  on the back of profit-taking following last week’s gains, added to news that the Organisation of Petroleum Exporting Countries (OPEC) may increase production, analysts have said.

Crude Brent fell 3.3% to $45.83 per barrel, while US crude retreated 2.5% to $44.78 per barrel.

Traders in the commodities market took to profit-taking after last week’s gains, said economic analyst Fouad Darwish, adding that crude prices were also affected by news that OPEC boosted production at the end of April, a step that has prompted fears of an oil glut.

OPEC production increased in April to 32.64 million barrels  per day, a Reuters survey showed.

Increased production may cause a glut in global markets once more, an issue that resulted in a price decline to the lowest levels in several years, the analyst noted.

US indices ended Monday at a rise, despite the oil, with the Dow Jones Industrial Average (DJIA) rising 0.66%, while NASDAQ Composite and the Standard & Poor’s 500 gained 0.88% and 0.78%, respectively.

In Europe, the Euro Stoxx 50 ended up 0.1% on Monday, while Germany’s Dax index grew 0.8% on the back of improved industrial activity reaching a 3-month high in Germany at the end of April. France’s CAC gained 0.3%.

The Dollar Index, which measures the value of the dollar relative to a basket of foreign currencies, was down 0.08% early Tuesday. Meanwhile, spot gold increased 0.07% to $1,296.75 per ounce.

The rise in gold prices affirms that investors prefer the safe haven metal to stocks amid fluctuating oil prices, commented metal market expert Badr Al-Ali.

Translated by: Nada Adel Sobhi