US Federal President Janet Yellen confirmed that raising interest rates would probably be appropriate “soon” as long as the economy make progress.
She added: “In the last Monetary policy meeting in November, monetary policy-makers decided that the conditions to increase interest rates continued to improve and such an increase could become appropriate “relatively soon” if the next data provided us with further evidence of the continuing progress.
Yellen warned that the bank could not put off raising interest rates for a long time because it can lead to having to tighten policies suddenly “to prevent the economy from exceeding” the goals of inflation and employment.
Gold fell to its lowest level in five and a half months, erasing early gains with the rise of the dollar index to its highest level in 13 years and a half year due to strong economic data in the United States including the issuance of building permits data, jobless claims and the consumer price index and the Philadelphia manufacturing.
The International Energy Agency said that the oil market could see a severe shortage in years if the decline continues at the current level of investment in the sector.
The agency, which represents the 29 oil-producing Countries, said that no additional spending on discovering and developing of new Oil fields will increase demand and limit the supply of oil in the beginning of the next decade, which could lead to the rise of oil prices again.
Oil prices fell after Yellen’s speech and the possibility of raising interest rates soon, which support the dollar despite of the hopes about OPEC output cut.
Russian Energy Minister Alexander Novak said today after a meeting with his counterparts in OPEC countries that confidence increased in the possibility of an agreement between Moscow and the organization regarding production to support global oil prices.