West Texas Intermediate crude pared losses after the government reported U.S. inventories tumbled the most in almost a year last week.

Prices rebounded to near a six-week high after declining 0.9 percent. The Energy Information Administration said supplies dropped 10.6 million barrels in the week ended Dec. 6. Analysts surveyed by Bloomberg had forecast a decrease of 3 million. The International Energy Agency raised estimates for 2014 global oil demand amid an economic recovery in the U.S.

WTI for January delivery slipped 37 cents, or 0.4 percent, to $98.14 a barrel at 10:43 a.m. on the New York Mercantile Exchange. It traded at $97.82 before the report and rebounded to $98.34 immediately after. The contract climbed to $98.51 yesterday, the highest settlement since Oct. 28. The volume of all futures traded was 1.8 percent below the 100-day average.

Brent for January settlement decreased 34 cents, or 0.3 percent, to $109.04 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude was at a premium of $10.90 to WTI. The spread was $10.87 yesterday, the narrowest since Nov. 8 based on closing prices.

Gold prices decline after three days of growth , but still close to three-week high , supported by a weak dollar and short covering .

Report agreement on the budget in the United States reduced the attractiveness of gold as a safe asset and physical demand in Asia weakened after a rise in prices . Analysts believe that in the near future prices will support technical buying .

Experts point out that from a technical point of view, gold should go up to $ 1,270 and then to $ 1,300 by the end of the year. However, this depends on whether the market will keep $ 1,250 resistance level , and from the Fed meeting next week.

Markets await Fed meeting on 17-18 December to see whether the central bank will start buying bonds to reduce the amount to $ 85 billion per month. Reducing incentives adversely affect gold, which is considered a hedge against inflation , but many analysts believe that investors have already taken into account in the quotations reduction incentives in December.

Gold prices were down most of 2013 against the backdrop of fears about what the completion of bond purchases by the Fed would deprive the market of a key source of support . Many investors turned to safer assets in mind fears that liquidity injections cause an increase in inflation or weaken the U.S. dollar.

Cost February gold futures on the COMEX today dropped to $ 1252.10 per ounce.

Gold $1,262.70 +1.60 +0.13%

Oil $98.43 -0.08 -0.08%