By Sue Thomas
LONDON, Dec 11 (Reuters) - Oil rose above $45 on Thursday after the International Energy Agency predicted oil demand would grow next year and on expectations of output cuts, which also helped gold extend its gains by more than 3 percent.
Platinum and palladium also ticked higher but remained rangebound as traders awaited the outcome of Congress' discussions of a $14 billion plan to bail out U.S. carmakers.
Uncertainty over the auto package triggered selling in Tokyo rubber futures, and investors also awaited the release of U.S. weekly jobless claims later in the day, which could erase gains in oil if it unveils bad numbers.
U.S. crude was up $2.23 at $45.75 a barrel by 1152 GMT, after surging $1.45 to settle at $43.52 on Wednesday. Brent crude was up $2.55 at $44.95.
World oil demand growth would return in 2009 after shrinking this year for the first time since 1983, the IEA, which advises 28 nations on energy policy, said in its report. It also cut forecasts for supply outside OPEC next year.
"We knew the bad bits, demand down, but the supply downgrade was supportive," said Rob Laughlin of MF Global.
Signs also emerged that top exporter Saudi Arabia had slashed January supplies ahead of next week's meeting of oil cartel OPEC.
Spot gold hit a high of $832.30 an ounce and was quoted at $830.80/832.80 an ounce at 1304 GMT, up from $809.90 in New York late on Wednesday, also helped by dollar weakness
On Thursday, the dollar hit a six-week low against the euro. Gold is often bought as an alternative asset to the dollar and tends to move in the opposite direction to it. Rising oil prices help support interest in commodities as an asset class, and can boost gold's appeal as an inflation hedge.
Spot platinum was at $837.50/857.50 an ounce against $822.
Copper fell 2.3 percent on economic growth concerns, particularly in China, ahead of the U.S. jobless data.
COPPER SUFFERS
London Metal Exchange copper fell to a low at $3,230 a tonne before trading at $3,290 by 1022 GMT against $3,305 on Wednesday, when the metal rose 4.5 percent at one point.
"The metals are under pressure and it will get worse before it gets better," analyst Eugen Weinberg at Commerzbank said.
Demand for exports from China shrank last month, pointing to an economic slowdown in the world's largest copper consumer. Its annual consumer price inflation fell to a 22-month low of 2.4 percent in November as economic growth slows.
"The data that we receive is really pointing to falling demand ... lower exports data from China is increasing the risk of an economic slump also in China," Weinberg said.
Prices of copper, used in power and construction, have fallen more than 60 percent since a record high of $8,940 in July. Last week it hit $2,991, the lowest since May 2005.
LME aluminium gained $10 to $1,535 a tonne despite another hefty rise in stockpiles.
Rio Tinto, which announced on Wednesday plans to slash capital expenditure, said it would cut aluminium output in France.
"I think we will soon see the light at the end of the tunnel as the production cuts will have an effect," Weinberg said.
The higher oil price helped push grains off earlier lows, although trading was light ahead of the United States Department of Agriculture's monthly report on global agricultural supply and demand.
Chicago Board of Trade corn for March delivery eased 0.44 percent to $3.43-1/2 per bushel by 1200 GMT, while the December contract was down 0.23 percent at $3.27 ahead of its expiry on Friday. (Additional reporting by Alex Lawler, Anna Stablum and Jan Harvey in London, Valerie Parent and Bruce Hextall in Paris; editing by Peter Blackburn)
