Oil prices rose as stock markets rebounded from the recent drop. The U.S. crude oil inventories data also supported oil prices. The U.S. Energy Information Administration (EIA) said on Wednesday that U.S. crude inventories dropped by 5.45 million barrels to 450.8 million in the week to August 21.

Analysts had expected U.S. crude oil inventories to decline by 2.0 million barrels.

Gains were limited as on concerns over the global oil oversupply and a slowdown in the Chinese economy still weighed on oil prices.

WTI crude oil for October delivery increased to $41.26 a barrel on the New York Mercantile Exchange.

Brent crude oil for October rose to $45.86 a barrel on ICE Futures Europe.

Gold price fell on a stronger U.S. dollar. The U.S. dollar rose against other currencies on the better-than-expected initial jobless claims and revised GDP data from the U.S. The U.S. revised GDP climbed 3.7% in the second quarter, exceeding expectations for a 3.2% increase, up from the preliminary estimate of a 2.3% rise.

The upward revision was partly driven by an upward revision to inventories.

Consumer spending rose by 3.1% in the second quarter, up from the previous estimate of a 2.9% increase.

Business investment increased 3.2% in second quarter, up from the preliminary estimate of a 0.6% decline.

Exports climbed 5.2%, while imports were up 2.8%.

The number of initial jobless claims in the week ending August 22 in the U.S. fell by 6,000 to 271,000 from 277,000 in the previous week.

Analysts had expected the number of initial jobless claims to be 274,000.

September futures for gold on the COMEX today decreased to 1119.50 dollars per ounce.

Moody's Investors Service said on Thursday that the latest policy action by the People's Bank of China (PBoC) will add liquidity to the financial system, but it also points to the weakness in the domestic economy.

"On balance, we expect the latest policy action to be positive for Chinese banks from a liquidity perspective," Frank Wu, a Moody's analyst, said.

"This will alleviate upward pressure on interbank borrowing rates and ease interbank rate volatility. But the latest policy move is symptomatic of further weakness in the domestic economy and the challenging operating environment for banks," he added.

China's Commerce Ministry said on Thursday that the country has relaxed its real estate investment rules for foreigners. Foreign individuals and companies can buy as many properties as they want, as long as it is within the limits of local housing purchase.

Foreign investors should not pay their registered capital in full before borrowing local loans anymore.

West Texas Intermediate futures for October delivery advanced to $39.74 (+2.95%), while Brent crude rebounded to $44.42 (+2.97%). The U.S. Energy Information Administration reported Wednesday that the country's crude inventories unexpectedly fell by 5.5 million barrels in the week ending August 21, suggesting strong demand. U.S. crude production declined by 11,000 barrels a day in the same week, maintaining output above 9.3 million barrels, which is still close to a decades-high production level. Meanwhile inventories of gasoline rose by 1.7 million barrels, reminding of global glut issues.

Some analysts say that gains generated by the EIA data might be short-lived, because the bearish momentum can't be underestimated.

Recovery in stocks supported oil as well.

Gold climbed to $1,126.10 (+0.13%) after substantial declines on Wednesday, which were caused by recovery of stock markets. Doubts concerning a rate hike in September limited gold's fall.

Traders believe that there is a 25% chance of a rate increase next month. FOMC member Dudley said Wednesday that a rate increase in September seems to be less likely than a few weeks ago. Nevertheless Dudley said that he hopes that this event will take place this year.

(raw materials / closing price /% change)

Oil 39.32 +1.87%

Gold 1,122.70 -0.17%