Oil prices traded higher on hopes that oil producers will cut their oil output. United Arabian Emirates (UAE) Energy Minister Suhail bin Mohammed al-Mazrouei said on Thursday that the Organization of the Petroleum Exporting Countries (OPEC) was ready to cooperate to lower oil production.

He noted that low oil prices will help to rebalance the oil market due oil output reductions.

Market participants are also awaiting the release of the number of active U.S. rigs later in the day. The oil driller Baker Hughes reported on last Friday that the number of active U.S. rigs declined by 31 rigs to 467 last week. It was the biggest drop since April 2015 and the lowest level since March 2010.

WTI crude oil for February delivery declined to $26.34 a barrel on the New York Mercantile Exchange.

Brent crude oil for March fell to $30.23 a barrel on ICE Futures Europe.

Gold price declined on profit taking and on a stronger U.S. dollar. The U.S. dollar rose against other currencies on the U.S. retail sales data. The U.S. Commerce Department released the retail sales data on Friday. The U.S. retail sales increased 0.2% in January, exceeding expectations for a 0.1% rise, after a 0.2% gain in December. December's figure was revised up from a 0.1% decrease.

The increase was mainly driven by a rise in sales at auto dealerships, sales at clothing retailers and sales at building material and garden equipment stores.

Retail sales excluding automobiles rose 0.1% in January, exceeding expectations for a flat reading, after a 0.1% rise in December.

March futures for gold on the COMEX today fell to 1234.70 dollars per ounce.

United Arabian Emirates (UAE) Energy Minister Suhail bin Mohammed al-Mazrouei said on Thursday that the Organization of the Petroleum Exporting Countries (OPEC) was ready to cooperate to lower oil production.

He noted that low oil prices will help to rebalance the oil market due oil output reductions.

According to The Wall Street Journal survey, only 9% of economists expect the Fed to raise its interest rate in March, down from 66% last month. 60% expect that the Fed would hike its interest rate in June, up from 25% last month.

13% of economists expect the Fed to raise its interest rate in April, up from 7% a month ago.

3% economists surveyed this month said that the Fed's next monetary policy action will be an interest rate cut.

The Wall Street Journal surveyed 69 economists.

West Texas Intermediate futures for March delivery rose to $27.41 (+4.58%), while Brent crude surged to $31.44 (+4.59%) after sharp declines on Thursday. Oil prices bounced off a twelve-year low on short-covering. Comments from U.A.E. energy minister Suhail Al Mazrouei helped to support prices too. The Wall Street Journal wrote that Suhail Al Mazrouei said OPEC was ready to cooperate to reduce output. However, most analysts don't expect such talks to materialize. Such speculations cannot be reliable market fundamentals unless such players as Saudi Arabia and Iraq take real steps to tame excessive supplies.

Gold slid to $1,239.80 (-0.64%) after jumping to a one-year high in the previous session. Turmoil in stock markets across the globe boosts demand for safe-haven assets. Some analysts say that investors don't believe central banks can fix the situation.

Comments made by Federal Reserve Chairwoman Janet Yellen on Thursday further decreased expectations of a rate hike in the near future. Although Yellen suggested that the Fed plans to continue raising rates, market participants took her comments as a "no".

Holdings of SPDR Gold Trust, the largest gold-backed exchange-traded-fund, rose by 2% on Thursday marking the biggest inflow in two months.

(raw materials / closing price /% change)

Oil 27.20 +3.78%

Gold 1,247.20 -0.05%