West Texas Intermediate crude rose on speculation that central banks will bolster stimulus after more Americans than projected filed applications for unemployment benefits and U.S. consumer prices decreased.

Futures climbed as much as 1.2 percent as Labor Department figures showed that jobless claims exceeded all forecasts in a Bloomberg survey of economists. The U.S. cost of living fell in April for a second month, the first back-to-back declines in prices since late 2008. St. Louis Federal Reserve President James Bullard said last month that persistent disinflation may require the central bank to provide additional stimulus.

WTI oil for June delivery rose $1.12, or 1.2 percent, to $95.42 a barrel at 11:15 a.m. on the New York Mercantile Exchange. Prices dropped as much as $1.07 before the release of the U.S. figures at 8:30 a.m. in Washington. The volume of all contracts traded was 54 percent above the 100-day average for the time of day.

Brent crude for June settlement, which expires today, advanced 37 cents, or 0.4 percent, to $104.05 a barrel on the London-based ICE Futures Europe exchange. The more actively traded July futures increased 65 cents, or 0.6 percent, to $104.15 a barrel. Volume for all contracts was 25 percent greater than the 100-day average.

Gold prices fell on Thursday to its lowest level in almost a month amid fears of collapse and the Fed's bond purchases to reduce the volume of metal in the Investment Fund ETF to a minimum since 2009.

Gold prices may fall to show the sixth day in a row and record the worst performance since March 2009.

"The recent strengthening of the U.S. dollar eroded gold's appeal for financial investment," - said the head of ANZ Global Markets Research Tim Riddell. Strengthening U.S. currency makes commodities denominated in it more expensive for holders of other currencies.

The decline in gold exchange-traded fund - ETF - shows that investors switch from gold to stocks. Thus, the volume of metal in the largest gold ETF-oriented world - SPDR Gold Trust - has decreased by 0.43 per cent to 1,047 tonnes on Wednesday - the lowest level since March 2009.

Financial market participants also fear that the U.S. Federal Reserve may decide to curtail loose monetary policy, which is why investing in gold to protect against inflation could lose meaning.

The cost of the June gold futures on COMEX today dropped to 1368.00 dollars an ounce.

Change % Change Last

GOLD 1,391.50 -33.00 -2.32%

OIL (WTI) 94.33 0.12 0.13%