Crude oil was little changed after rising on speculation a bank-rescue plan by President Barack Obama will help boost economic growth and increase fuel demand. Oil climbed 6.6 percent yesterday as stocks rallied on the new U.S. president’s plans to complete an assistance program that can be paired with the $825 billion stimulus package. U.S. crude-oil inventories probably rose last week as refineries cut operating rates, a Bloomberg News survey showed. “The expectation for further investment was one of the influences behind the oil price,” said Gerard Burg, a minerals and energy economist with National Australia Bank Ltd. in Melbourne. “The Obama inauguration was seen as a positive since it brings some certainty with the new government in place.” Crude oil for March delivery was at $43.54 a barrel, down 1 cent, at 12:49 p.m. Singapore time after rising as much as 68 cents, or 1.6 percent, to $44.23 a barrel on the New York Mercantile Exchange. Oil has fallen 2.4 percent since the end of December and is 52 percent lower than a year ago. In New York, the Dow Jones Industrial Average increased 279.01 points, or 3.5 percent, to 8,228.1 yesterday. The Standard & Poor’s 500 Index rose 35.02 points, or 4.4 percent, to 840.24. Slowing Economies Japan, China and South Korea showed signs of further economic slowdown as exports and spending declined. Crude fell as low as $32.70 a barrel on Jan. 20, the lowest in a month. Japan’s exports plunged by a record 35 percent in December, signaling companies will be forced to shut factory lines and fire more workers, driving the economy deeper into recession. China’s economy expanded 6.8 percent in the fourth quarter, the slowest pace in seven years. South Korea’s economy shrank a larger-than-expected 5.6 percent last quarter, the biggest decline since the Asian financial crisis a decade ago as exports, business investment and consumer spending fell. The price of oil for delivery in April is $1.83 higher than for March, down from a $4.45 premium on Jan. 16. December futures are $9.85 higher from the front month, versus $15.04 at the end of last week. This structure, in which the subsequent month’s price is higher than the one before it, is known as contango. Contango Narrows “With the contango narrowing, that might indicate a bit more pessimism on the length of the economic downturn,” said National Australia’s Burg. “The market balance may be more in line with current conditions rather than the tight market conditions we’ve seen over the past few years.” The spread has encouraged companies to increase stockpiles at Cushing, Oklahoma, where West Texas Intermediate, the grade traded on the Nymex, is stored. Supplies at the hub climbed 2.5 percent to 33 million barrels in the week ended Jan. 9. It was the highest level since at least April 2004, when the Energy Department began keeping records for the location. Prices could fall on speculation that the department may say U.S. crude-oil inventories rose last week when it releases its weekly supply report at 11 a.m. today in Washington, a day later than usual because of the Martin Luther King Jr. holiday on Jan. 19. The report may show that stockpiles rose 1.4 million barrels in the week ended Jan. 16, according to the median of 14 analyst estimates in a Bloomberg News survey. Gasoline stockpiles rose 1.8 million barrels last week, according to the survey. Inventories of distillate fuel, a category that includes heating oil and diesel, probably increased 500,000 barrels. Brent crude oil for March settlement was at $44.95 a barrel, down 7 cents, at 12:53 p.m. Singapore time on London’s ICE Futures Europe exchange. The contract had risen as much as 47 cents, or 1 percent, to $45.49.

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