Oil futures were little changed after the U.S. government reported inventories increased less than forecast and gasoline demand reached a 10-week high.

Crude traded in a $1.07-a-barrel range after the Energy Department said supplies gained 1.09 million barrels last week to 375.9 million, the highest level since July. Stockpiles were forecast to gain 2.65 million barrels, according to the median of 10 analyst estimates. Gasoline demand rose to 8.91 million barrels a day.

Oil rose in early trading on concern that escalating Middle East tension will disrupt supplies and as the euro strengthened against the dollar. Israel and Palestinian militants in the Gaza Strip exchanged rocket fire and airstrikes a day after Israel killed Ahmed al-Jabari, the leader of Hamas’s military wing.

Futures pared gains as more Americans than forecast submitted claims for unemployment insurance last week and manufacturing in the New York region contracted.

Applications for jobless benefits surged by 78,000 to 439,000 in the week ended Nov. 10, the most since April 2011, the Labor Department reported. Several states said the increase was due to the storm that hit the Northeastern part of the U.S. in late October, a Labor Department spokesman said.

The Federal Reserve Bank of New York’s general economic index was minus 5.2 this month after minus 6.2 in October. Readings of less than zero signal contraction in New York, northern New Jersey and southern Connecticut.

Crude oil for December delivery fell to $85.76 a barrel on the New York Mercantile Exchange.

Brent crude for December settlement, which expires today, gained $1.22, or 1.1 percent, to $110.83 a barrel on the London- based ICE Futures Europe exchange. The more actively traded January contract gained 37 cents to $108.85.

Gold cheaper after equity markets, but support the precious metal have tensions in the Middle East and the fear of financial crisis in the U.S..

World gold demand fell by 11 percent in the third quarter compared to last year due to reduced demand in China, said the World Gold Council (WGC).

"With the continued uncertainty in the global economy and the elections in China and the U.S. five-year upward trend in demand for gold confirms its fundamental property as a way to preserve capital," - said the WGC managing director for investment analysis Marcus Grubb.

The Chinese Communist Party has introduced a new guide that will manage the second largest economy in the world next five years.

Gold has found support in increasing tensions in the Middle East: Israel launched a new offensive against Palestinian militants in the Gaza Strip, during which killed one of the commanders of Hamas. Rocket fired by Hamas, on Thursday killed three Israelis in the north of Gaza.

December futures price of gold on COMEX today fell to 1704.50 dollars per ounce.

Change % Change Last

Oil $86.20 -0.12 -0.14%