US oil futures nudged higher on Friday as traders mulled a hefty draw on weekly crude stockpiles while non-farm payrolls data also provided some support.

Crude for February delivery climbed 17 cents to settle at $93.09 a barrel on the New York Mercantile Exchange although the stronger dollar kept gains in check. Oil prices have risen 2.5% since the start of 2013.

Prices had spiked earlier in the week after US lawmakers approved a last minute deal to avoid the fiscal cliff.

By Friday focus turned to the Energy Information Administration report, which showed crude supplies fell by a massive 11m barrels compared to a forecast for a decline of 0.9m barrels.

The report, which was two days later than usual because of the New Year holiday, also showed gasoline supplies rose by 2.6m barrels instead of an expected rise of 2.3m barrels. Meanwhile distillates rose 4.6m barrels. Analysts had predicted distillates to rise 1.6m barrels.

Following the supply report, markets digested the latest report from the US Department of Labor, that showed 155,000 jobs were added in December, down slightly from an upwardly revised increase of 161,000 in November. The unemployment rate remained at 7.8%.

Among precious metals gold nursed a 1.5% loss on Friday as traders bet that the Federal Reserve could wind down its quantitative easing programme in 2013 after minutes from its last meeting on Thursday.

Gold for February delivery dropped $25.70 to settle at $1,648.90 an ounce on the Comex division of the New York Mercantile Exchange after plummeting to an intra-day low of $1,626.

Bullion recovered from lows after Friday's US job report although the dollar's strength kept gold in negative territory.



CJ

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