West Texas Intermediate futures for February delivery climbed to $37.75 (+0.67%), while Brent crude advanced to $37.71 (+0.94%) after sharp gains in the previous session. The Energy Information Administration reported on Wednesday that U.S. crude oil inventories fell by 5.9 million barrels in the week ending December 18. Economists had expected a 1.1 million barrels gain.

Nevertheless fundamentals remain unfavorable for oil, because the market is still oversupplied and a one-week decline in U.S. crude inventories does not change the general situation.

Gold climbed to $1,073.20 (+0.46%) on a softer dollar and gains in crude oil prices after the Energy Information Administration unexpectedly reported a decline in U.S. crude oil inventories. Gold is often seen as a hedge asset against oil-driven inflation. Low trading volume ahead of holidays makes bullion sensitive to market movements.

Nevertheless fundamentals remain bearish. The Federal Reserve is expected to continue raising its interest rates gradually and this would support the dollar. Some analysts say that prices may fall below $1,000 key level in 2016.

(raw materials / closing price /% change)

Oil 37.84 +0.91%

Gold 1,071.40 +0.29%