Oil pared gains after U.S. inventories unexpectedly increased last week and gasoline supplies climbed more than twice as much as forecast.

Stockpiles of crude rose 843,000 in the week ended Dec. 7, the Energy Department said today. Inventories were forecast to decrease 2.5 million barrels.

Oil inventories increased to 372.6 million barrels in the first gain in four weeks, the Energy Department reported. Gasoline stockpiles jumped to 217.1 million, the most since April 6.

Oil rallied as much as 1.6 percent earlier as the International Energy Agency increased its demand forecast and on speculation the Federal Reserve will expand stimulus measures.

Global oil consumption in the fourth quarter will average 90.5 million barrels a day, about 435,000 barrels, or 0.5 percent, more than previously forecast, the Paris-based IEA said in a monthly report today. Demand will expand by 865,000 barrels a day in 2013 to 90.5 million, adding 110,000 barrels to a previous outlook.

The Organization of Petroleum Exporting Countries maintained its quota at 30 million barrels a day for a second time this year at a meeting today in Vienna after the group’s members judged prices to be sufficiently high.

Crude oil for January delivery advanced to $86.70 a barrel on the New York Mercantile Exchange after rising to $87.16 earlier. Oil traded at $86.80 a barrel before release of the inventory report.

Brent for January settlement on the London-based ICE Futures Europe exchange gained $1.47, or 1.4 percent, to $109.48 a barrel.

Gold rises in price before the announcement of the results of the meeting of the Federal Reserve, from which the market is waiting for further stimulus measures.

On the eve of the Fed dollar is close to many months lows, making gold more attractive asset for investors outside the United States.

Widely expected that the committee will announce Wednesday afternoon that replaces the operation twist, the terms of which comes to an end, a new program of purchase of U.S. Treasury bonds, which will increase the Fed's balance sheet. Such programs, known as quantitative easing, usually weaken the currency. In the market believe that they are equivalent to printing money.

Stocks of gold-ETFs ETF fell to 76.178 million ounces on Monday reached a record 76.187 million ounces.

February futures price of gold on COMEX today rose to 1720.40 dollars per ounce.

Change % Change Last

Oil $85.95 +0.16 +0.19%

Gold $1,711.20 +1.60 +0.09%