Oil rebounded after U.S. consumer confidence in May climbed to the highest level in four years, bolstering optimism that the economic growth and fuel demand will accelerate.

Futures erased a 1.5 percent loss after the Thomson Reuters/University of Michigan preliminary index of consumer sentiment reached 77.8, the highest since January 2008. Prices dropped earlier as China’s industrial output slowed in April and concern grew that Europe’s debt crisis will worsen.

Crude oil for June delivery dropped to $95.61 earlier. The contract is 1.4 percent lower this week.

Brent oil for June settlement slipped 22 cents to $112.51 a barrel on the London-based ICE Futures Europe exchange. The European benchmark contract’s premium to West Texas Intermediate was at $15.43, down from $15.65 yesterday.

Gold drops on Friday, succumbing to sales in the global financial grounds after the huge losses JPMorgan undermined investor confidence.

U.S. bank JPMorgan Chase & Co said that he had lost at least $ 2 billion as a result of a failed hedging strategies. Although these losses are directly related to JPMorgan, they may have common negative consequences - further tightening of controls and oversight of risk management.

Hopes that the Greek politicians will be able to agree among themselves, a little calm markets. Antonis Samaras Conservative leader said that there is still hope to form a government, thus avoiding the re-election.

It should be noted that today the outlook for economic growth published European Commission. In 2012, for the whole euro area is expected to decline in GDP of 0.3%(same as the IMF predicts), while Germany's GDP growth at 0.7%, France's GDP growth by 0.5%, but drop in GDP in Italy by 1.4%.

The cost of the June gold futures on the COMEX fell today to $ 1572.0 an ounce and is now trading at $ 1586.8 an ounce.

• revises up 2012 global demand outlook 80 kbd to 90.0 mbd

• April global oil supply rose 600 kbd m/m to 91.0 mbd