Oil prices traded mixed as a weaker U.S. dollar supports oil prices, while yesterday's U.S. crude oil inventories data weighed on oil prices.

The U.S. Energy Information Administration (EIA) released its crude oil inventories data on Wednesday. U.S. crude inventories increased by 0.25 million barrels to 487.3 million in the week to November 13. It was the eighth consecutive increase. Analysts had expected U.S. crude oil inventories to rise by 1.9 million barrels.

The greenback traded lower against other currencies on the Fed's latest monetary policy meeting minutes. The minutes showed that an interest rate hike in December is possible, but it will depend on the incoming data.

WTI crude oil for January delivery dropped to $40.44 a barrel on the New York Mercantile Exchange.

Brent crude oil for January rose to $44.30 a barrel on ICE Futures Europe.

Gold price rose on the Fed's minutes. The minutes showed that an interest rate hike in December is possible, but it will depend on the incoming data.

"Some participants thought that the conditions for beginning the policy normalization process had already been met. Most participants anticipated that, based on their assessment of the current economic situation and their outlook for economic activity, the labour market, and inflation, these conditions could well be met by the time of the next meeting," the minutes said.

Market participants eyed the U.S. initial jobless claims data today. According to the U.S. Labor Department, the number of initial jobless claims in the week ending November 14 in the U.S. fell to 271,000 from 276,000 in the previous week, in line with expectations.

Jobless claims remained below 300,000 the 37th straight week. This threshold is associated with the strengthening of the labour market.

December futures for gold on the COMEX today increased to 1081.70 dollars per ounce.

The People's Bank of China (PBoC) lowered its seven-day Standing Lending Facility (SLF) interest rate for local financial institutions to 3.25% from 5.5%. The overnight SLF rate for some local financial institutions was cut to 2.75% from 4.5%.

The central bank hopes with this decision to stimulate the country's economy.

The interest rate cut would be effective from November 20.

The U.S. Labor Department released its jobless claims figures on Thursday. The number of initial jobless claims in the week ending November 14 in the U.S. fell to 271,000 from 276,000 in the previous week, in line with expectations.

Jobless claims remained below 300,000 the 37th straight week. This threshold is associated with the strengthening of the labour market.

Continuing jobless claims decreased by 2,000 to 2,175,000 in the week ended November 07.

The Fed released its October monetary policy meeting minutes on Wednesday. The minutes showed that an interest rate hike in December is possible.

"Some participants thought that the conditions for beginning the policy normalization process had already been met. Most participants anticipated that, based on their assessment of the current economic situation and their outlook for economic activity, the labour market, and inflation, these conditions could well be met by the time of the next meeting," the minutes said.

Members noted that there should be no "unanticipated shocks", which could "adversely affect the economic outlook and that incoming data support the expectation that labour market conditions will continue to improve and that inflation will return to the Committee's 2 percent objective over the medium term".

Most members said that the downside risks to the outlook arising from economic and financial developments abroad diminished.

FOMC members voted 9-1in September to keep interest rates unchanged. Only Richmond Fed President Jeffrey Lacker voted to raise interest rate by 0.25%.

West Texas Intermediate futures for December delivery climbed to $42.33 (+0.91%), while Brent crude advanced to $44.56 (+0.95%) amid speculation that military actions in Syria could worsen geopolitical tensions.

However oil prices are expected to remain under pressure as the global supply glut persists. The U.S. Energy Information Administration reported on Wednesday that the country's crude inventories rose by 252,000 barrels to 487.3 million barrels in the week ending November 13. Although analysts had expected a greater gain of 1.9 million barrels.

Gold advanced to $1,076.10 (+0.69%) as the dollar slid making the metal more affordable for buyers using other currencies.

The minutes of the latest Fed meeting signaled that the central bank left a rate hike in December on the table. Some analysts say that the start of the interest rate normalization in the U.S. will result in a relative weakness of the dollar as the cost of doing business will also grow persuading investors to search for alternatives and gold's appeal as a safe-haven from inflation will improve.

(raw materials / closing price /% change)

Oil 40.67 -0.20%

Gold 1,069.50 +0.07%