Oil fluctuated as German investor confidence jumped to a seven-month high in December and as OPEC members gathered in Vienna to discuss output levels.

Prices swung between gains and losses as confidence in Germany, the biggest oil user in the European Union, increased more than economists forecast on speculation the economy will gather momentum next year. The Organization of Petroleum Exporting Countries will probably leave its production quota unchanged when it meets tomorrow.

The ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations, which aims to predict economic developments six months in advance, climbed to 6.9 from minus 15.7 in November. Economists predicted a gain to minus 11.5, according to the median estimates.

OPEC crude output tumbled to the lowest level in 11 months in November as Saudi Arabia, the group’s biggest producer, pumped the least in 13 months, according to revised data in an e-mailed report from the group.

Crude for January delivery rose to $86.37 a barrel on the New York Mercantile Exchange.

Brent for January settlement on the London-based ICE Futures Europe exchange gained 42 cents, or 0.4 percent, to $107.75 a barrel.

Gold prices are falling, but investors are waiting for growth when the Federal Reserve will announce new stimulus measures. Such actions are positive for gold, as increased demand for it among investors worried about the protection of their savings in times of loose monetary policy. However, before the announcement of the Fed buying of gold is likely to be limited.

In addition, the increase in metal prices while retaining tension in the eurozone. In particular, the concern is the political crisis in Italy, which may impede the implementation of measures to tackle the debt crisis. Recall that on Saturday, the Italian Prime Minister Mario Monti announced that, following the adoption of the budget for 2013. intends to leave the post. Investors fear that the departure of Mario Monti will open the way Silvio Berlusconi, who last week announced that it will once again compete for power.

Meanwhile, on Monday called on the M.Monti trading on stock exchanges without unduly dramatize his departure. In particular, the head of the Italian cabinet said that he saw the conditions under which the country would form a political vacuum because of the departure of his plans to the government.

Stocks of gold-ETFs on Monday declined to 76.177 million ounces, previously reached a record volume.

February futures price of gold on COMEX today fell to 1706.00 dollars per ounce.

Change % Change Last

Oil $85.69 +0.13 +0.15%

Gold $1,713.60 -0.80 -0.05%