West Texas Intermediate fell below $95 a barrel for the first time since June on surging U.S. stockpiles and as the dollar gained versus the euro, curbing commodity demand from investors.

Futures headed for a fourth straight weekly decline, the longest stretch of decreases in more than a year. A U.S. government report on Oct. 30 showed that supplies advanced a sixth week. The dollar climbed against the euro for a fifth day on speculation that the European Central Bank will reduce interest rates to spur economic growth.

WTI for December delivery decreased $1.50, or 1.6 percent, to $94.88 a barrel at 11:20 a.m. on the New York Mercantile Exchange. Futures touched $94.81, the lowest intraday level since June 26. Prices are down 3 percent this week and fell 5.8 percent in October. The volume of all futures traded was about 22 percent below the 100-day average.

Brent for December settlement dropped $1.88, or 1.7 percent, to $106.96 a barrel on the London-based ICE Futures Europe exchange. Volume was 18 percent higher than the 100-day average. The European benchmark crude traded at a $12.08 premium to WTI, down from $12.46 yesterday.

The price of gold reached a two-week low after a sharp drop on Thursday caused by profit-taking at the end of the month , strong economic performance and the strengthening of the U.S. dollar.

Business activity in the U.S. Midwest in October exceeded forecasts by increasing the volume of new orders to the maximum level in 2004 , while the number of applications for unemployment benefits fell last week.

The published data on Friday Institute for Supply Management (ISM) showed that despite the suspension of the government , manufacturing activity in the U.S. in October remained at a high level as last month. Purchasing Managers Index (PMI) for the manufacturing sector in the U.S. October was 56.4 against 56.2 in September. The October index was the highest since April 2011 .

Investors fear that the improvement in the economy will force the Fed will soon begin to reduce the volume of buying bonds to $ 85 billion a month.

The outflow of funds from the world's largest secured gold ETF SPDR Gold Trust this year has exceeded $ 20 billion , and its reserves are close to a minimum of four years.

China in September, the fifth consecutive month, bought more than 100 tons of gold in Hong Kong due to the high demand for jewelry and bullion. This year, China could become the world's largest consumer of gold instead of India .

The cost of the December gold futures on COMEX today dropped to $ 1305.60 per ounce.

GOLD 1,323.50 -25.80 -1.91%

OIL (WTI) 96.25 -0.52 -0.54%