Oil tumbles on oversupply, weak demand; gold rises

London

OIL prices tumbled last week, hampered by oversupplies and weak global demand despite a pick-up for the US economy, traders said. On Friday, official data showed the US unemployment rate fell to 5.6 per cent in December, the lowest level in 61/2 years, as the country capped its best year for job creation since 1999.

Crude hit a new 5.5-year low point. Brent North Sea crude dropped to US$48.90 a barrel on Friday and the New York price hit US$46.85 on Wednesday - the lowest levels since late April 2009.