WTI crude oil for March delivery tumbled to as low as 40.41 after rallying to 45 Thursday as EIA reported much worse-than-expected petroleum inventory. Although eventually recovered to close at 43.28, the gauge lost 2.3% for the day.

The inventory report showed bearishness in oil demand from all aspects. For the week ended Jan 16, crude oil stockpiles increased 6.1 mmb, with crude import holding up at 9.9 mmb and refinery crude runs dropping 0.441 mmb, to 332 mmb. Refinery demand was low and utilization rate plunged to 83.3% from 85.3% a week ago. Supply at Cushing, where Nymes WTI crude are stored, build 0.217 mmb.

Gasoline stockpile rose 6.5 mmb to 219.98 mmb. The addition was a combination of higher import and lower weaker demand. Distillate, which includes heating oil and diesel, increased 0.79 mmb in storage despite all bullish factors such as extremely cold weather and higher export.

Gold's near-term trading is refined at a range of 866.6-843 and the precious metal's fall after faltering below 864.6/866 was brought about by crude oil's slump and the dollar's strength. Against the euro, the dollar rallies to 1.2945 and heads for the 4th consecutive weekly rise as the Eurozone has released a series of disappointing economic data these few weeks.

Platinum price also declines as demand destruction looms. GM, the world's biggest carmaker announced its sales in 2008 dropped 11% while that for Toyota slid 4%. In the UK, car and truck production was reduced by 49% in December 2008. However, the condition of oversupply was partially offset by output cut in mining companies in S. Africa, a country accounting for 80% of the world's platinum supply.