Oil prices fell on concerns over the global oil oversupply. According to data by Genscape Inc., crude stocks at the Cushing, Oklahoma, climbed by 1.4 million barrels in the week ending December 15.

Market participants continued to eye yesterday's U.S. crude oil inventories data. According to the U.S. Energy Information Administration's (EIA) data on Wednesday, U.S. crude inventories increased by 4.80 million barrels to 490.7 million in the week to December 11. Analysts had expected U.S. crude oil inventories to decline by 1.4 million barrels.

Gasoline inventories increased by 1.7 million barrels, according to the EIA.

Crude stocks at the Cushing, Oklahoma, climbed by 607,000 barrels.

U.S. crude oil imports increased by 291,000 barrels per day.

Refineries in the U.S. were running at 91.9% of capacity, down from 93.1% the previous week.

A stronger U.S. dollar also weighed on oil prices. The U.S. dollar was supported by the Fed's interest rate hike. Oil suffers when the U.S. dollar strengthens, becoming more expensive for holders of other currencies.

WTI crude oil for January delivery declined to $34.79 a barrel on the New York Mercantile Exchange.

Brent crude oil for January decreased to $37.46 a barrel on ICE Futures Europe.

Gold price dropped on a stronger U.S. dollar. The U.S. dollar was supported by the Fed's interest rate hike. The Fed on Wednesday raised its interest rate to the range 0.25% - 0.50% from 0.00% - 0.25% as widely expected by analysts. All Federal Open Market Committee (FOMC) members voted for the interest rate hike. The Fed repeated that further interest rate hikes will be gradual.

Gold is traded in U.S. dollars. It suffers when the U.S. dollar strengthens, becoming more expensive for holders of other currencies.

The U.S. economic data also weighed on gold price. The U.S. Labor Department released its jobless claims figures on Thursday. The number of initial jobless claims in the week ending December 12 in the U.S. declined by 11,000 to 271,000 from 282,000 in the previous week. Analysts had expected jobless claims to fall to 275,000.

Jobless claims remained below 300,000 the 41st straight week. This threshold is associated with the strengthening of the labour market.

January futures for gold on the COMEX today traded at 1050.80 dollars per ounce.

The U.S. Labor Department released its jobless claims figures on Thursday. The number of initial jobless claims in the week ending December 12 in the U.S. declined by 11,000 to 271,000 from 282,000 in the previous week. Analysts had expected jobless claims to fall to 275,000.

Jobless claims remained below 300,000 the 41st straight week. This threshold is associated with the strengthening of the labour market.

Continuing jobless claims fell by 7,000 to 2,238,000 in the week ended December 05.

The Fed released its interest rate decision on Wednesday. It raised its interest rate to the range 0.25% - 0.50% from 0.00% - 0.25% as widely expected by analysts. All Federal Open Market Committee (FOMC) members voted for the interest rate hike, despite the observed differences earlier.

The Fed repeated that further interest rate hikes will be gradual.

"The actual path of the federal funds rate will depend on the economic outlook as informed by incoming data," the Fed said in its statement.

Interest rate forecasts were downgraded. The Fed expects its fed-funds rate to be 1.375% by the end of 2016, 2.375% by the end of 2017, down from its previous estimate of 2.625%, and 3.25% by the end of 2018, down from its previous estimate of 3.375%.

The Fed noted that risks to the outlook for both economic activity and the labour market are balanced, adding that low inflation was driven by declines in energy and import prices which are temporary.

The Fed Chairwoman Janet Yellen said in a press conference on Wednesday that the Fed is confident regarding the strength of the U.S. economy.

"The Fed's decision today reflects our confidence in the U.S. economy. We believe we have seen substantial improvement in labour market conditions and while things may be uneven across regions of the country, and different industrial sectors, we see an economy that is on a path of sustainable improvement," she said.

(raw materials / closing price /% change)

Oil 35.74 +0.62%

Gold 1,071.50 -0.49%