LONDON, Jan 2 (Reuters) - Oil and gold prices fell sharply on Friday as commodity markets made a weak start to 2009 following their worst ever losses last year. Industrial metals, however, bucked the trend with nickel soaring almost 16 percent on buying ahead of an annual rebalancing by major commodity indices.
Nickel was one of the worst performing commodities in 2008, effectively lowering its weighting in commodity indices, and the index funds are expected to buy the metal as they seek to restore the balance to normal levels.
U.S. light, sweet crude fell $2.82 or 6.3 percent to $41.78 a barrel by 1255 GMT, reversing part of Wednesday's $5.57 a barrel gains. Oil tumbled 54 percent last year.
