Oil dropped as German manufacturing output unexpectedly contracted in March, signaling the euro-zone debt crisis is slowing growth in the region’s biggest economy.

Futures fell as much as 1 percent after a purchasing managers’ index for Germany’s manufacturing slipped to 48.9 this month. The median forecast by economists called for a reading of 50.5, according to a survey.

Total euro-area services and manufacturing output slipped more than economists estimated in March. A composite index based on a survey of purchasing managers in both industries fell to 46.5 from 47.9 in February, London-based Markit Economics said today. Economists had forecast a reading of 48.2, according to the median of 23 estimates in a survey.

Cypriot President Nicos Anastasiades is trying to forge an agreement on how to stave off financial collapse. The island country’s government may propose a revamped bank-deposit levy to raise 5.8 billion euros ($7.5 billion) after lawmakers rejected a previous measure, a Cypriot official said.

The European Central Bank said today it may cut Cypriot banks off from emergency funds after March 25 as the country’s president worked on a new plan to obtain a European bailout.

Crude oil for May delivery declined to $92.54 a barrel on the New York Mercantile Exchange.

Brent oil for May settlement fell 55 cents, or 0.5 percent, to $108.17 a barrel on the London-based ICE Futures Europe exchange. 

Gold prices were stable in the first half of trading amid fears for the reduction of Cyprus and the Federal Reserve's promise to continue a policy change. In the last hours before going gold increased data on applications for unemployment benefits in the U.S.. After the Cyprus Parliament rejected the proposal of the EU tax on deposits in Cypriot banks, the island nation is trying to avoid a financial crisis, banks are closed until next week in order to avoid withdrawal and seeking help from Russia. The initial shock of the financial markets was because the small economy of Cyprus will have minimal impact on the world economy and, therefore, support gold prices will not last long, experts say. The growth of prices for precious metals prevent strengthening of the dollar has risen nearly 4 percent since the beginning of the year. The U.S. Federal Reserve on Wednesday maintained aggressive policy to support the economy, saying that would take into account the risks posed by its policies and compare them to progress in reducing unemployment. Demand in the physical market Asia dropped after the price exceeded $ 1,600. Stocks of the world's largest gold-exchange-traded fund (ETF) SPDR Gold Trust on Wednesday rose for the first time since early February. Gold received support today from the labor market data in the U.S. showed that the number of Americans filing applications for unemployment benefits last week increased slightly, but remained at a level indicating an improvement in the labor market. According to data presented Thursday by the Ministry of Labour, the number of initial claims for unemployment benefits in the week of March 10-16, 2000, and increased by a seasonally adjusted 336,000 vibrations made. This is slightly below the forecast of economists, who expected that the number of applications was 340,000. The number of initial claims is an indicator of layoffs. On Thursday Commerzbank cut its outlook on gold prices this year, citing a decrease in demand for the metal from hedge funds and other investment institutions. The bank lowered its forecast for the average price of gold in 2013, up 10% to $ 1,700 an ounce. Bank analysts believe that in the end, the price will increase to $ 1,800, but the mark of $ 2000 will not be reached until 2014. April futures price of gold today rose to 1616.5 dollars per ounce on the New York Mercantile Exchange.

(symbol/close price(00:00 GMT +02:00)/change, %)

GOLD 1,605.70 -2.50 -0.16%

OIL 93.40 +1.19 +1.29%