(MENAFN- ProactiveInvestors) Crude oil bounced back on bets a slide in prices to a five-year low was excessive and after data showed crude inventories declined although less than forecast.
Crude futures for delivery in January settled higher by 1 percent at $56.47 a barrel on the New York Mercantile Exchange. Oil had traded as low as $54.21 in earlier action today its lowest level since May 2009 then jumped by as much as 5 percent to nearly $59 before giving back most of that gain.
The Information Administration reported a smaller-than-expected decline in U.S. crude supplies in the week ended Dec. 12. Crude inventories declined by 800000 barrels. Analysts polled by Platts had expected a decline of 2.5 million barrels.
February Brent crude on London’s ICE Futures exchange rose 1.9 percent to $61.18 a barrel.
In metals trading gold futures switched between small gains and losses today in electronic trading after briefly jumping above the key round number of $1200 in the wake of what some analysts described as a more-dovish-than-anticipated statement.
Gold for February delivery was last down 0.2 percent to $1191.60 an ounce. Before the Fed release hit at 2 p.m. February gold had settled slightly higher but under $1200—up $0.2 to $1194.50 an ounce halting a five-day losing run.
Fed officials dropped a pledge to keep borrowing costs near zero percent for a “considerable time” replacing it with a promise to be “patient” according to a statement at the conclusion of a two-day meeting today.
In other metals trading March silver edged up 1.1 percent to finish at $15.93 an ounce.
January platinum rose 0.3 percent to end at $1199.50 an ounce while March palladium shed 0.6 percent to settle at $779.25 an ounce.
High-grade copper for March delivery rose by a penny or 0.3 percent to settle at $2.87 a pound.
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