LONDON (SHARECAST) - Crude prices rose over $4 Wednesday, as the Fed rate cut pushed the dollar off recent highs and a government report showed that motor gasoline supplies unexpectedly fell for the first time in five weeks. Crude for December delivery climbed $4.77 to settle at $67.50 a barrel on the New York Mercantile Exchange. Oil traders also mulled a mixed weekly US Energy Information Administration report. The inventory report showed a smaller than expected increase in US crude oil supplies while gasoline stocks fell 1.5m barrels for the week ended 24 October instead of expectations for a 900,000 barrel rise. Supplies of distillates, used to make heating oil, rose more than double than expected at 2.3m barrels. Meanwhile there were mixed analyst views on whether the Fed’s half a point interest rate cut will have much impact on demand for oil as recession nears. Concern about demand deterioration has seen crude oil prices tumble 55% from July’s high of over $147 a barrel. Among precious metals gold gathered momentum as the dollar was toppled from recent highs. Gold for December rose $13.50 to close at $755 an ounce on the Comex division of the New York Mercantile Exchange. A weaker dollar traditionally fuels demand for gold and other commodities. Normal floor trading for gold finished before the Fed cut its key lending rate, however traders snapped up the yellow metal ahead of the widely expected cut. Silver for December rose $1.02 to $9.81 while December copper advanced 23 cents to $2.088 a pound.

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