West Texas Intermediate dropped to a three-month low after an industry group reported an increase in inventories last week and as more Americans than forecast filed applications for unemployment benefits.

Prices dropped to near $100 a barrel. Supplies climbed by 5.94 million barrels, according to the American Petroleum Institute yesterday. Jobless claims reached 358,000 in the week ended Oct. 12, the Labor Department said. Prices rose 1.1 percent yesterday before Congress voted to end the government shutdown and raise the debt limit.

WTI for November delivery fell $1.86, or 1.8 percent, to $100.43 a barrel at 11:54 a.m. on the New York Mercantile Exchange after dropping to $100.09 the lowest intraday level since July 3. The volume of all futures was 25 percent above the 100-day average.

North Sea Brent for December settlement slid $1.31, or 1.2 percent, to $109.28 a barrel on the London-based ICE Futures Europe exchange. The November contract expired yesterday. Volume was 14 percent below the 100-day average. December Brent crude was at a premium of $8.85 to the equivalent-month WTI contract. The gap between November contracts was $8.57 yesterday.

The value of gold has shown strong growth while the dollar fell the most in a month against the euro , as the vague situation around the U.S. debt limit would prevent the growth and trigger the Fed to delay reduction programs stimulate the economy .

The U.S. currency weakened against all but one of its 16 major counterparts after BlackRock and Pacific Investment Management said that the Fed will maintain its bond purchases , which put pressure on the dollar.

Gold strengthened , when the rating agency Dagong China lowered the credit rating of the U.S. government , stimulating demand for safer assets .

This week the precious metals were dominated by investor - sellers due to the weakening of the operating factors such as political struggle for the budget and the approaching debt limit in the U.S. , points strategist and director of exchange-traded products brokerage Saxo Bank Ole Slot Hansen . Several attempts to initiate growth on the controversy in Washington quickly exhausted , and in light of the problem-solving support is rapidly disappearing , creating a risk of even deeper correction. In addition to the ongoing political conflict , the players , according to experts , will focus on the U.S. Federal Reserve and the timing of when she can begin to curtail asset purchase program . In this case, bond yields may again begin to rise, and will not benefit the precious metals , particularly gold, analysts say .

The cost of the December gold futures on COMEX today rose to $ 1322.90 per ounce.

OIL (WTI) 102.25 1.04 1.03%