Crude oil rose for the first time in a week after the Federal Reserve said some of the country’s biggest regional economies slowed their pace of declines, fueling speculation that energy demand will recover. Crude rebounded from a drop yesterday, when a government report showed U.S. oil stockpiles were the highest in almost 19 years. Later in the day, the Fed said in its Beige Book business survey that economic contractions were slowing or stabilizing in San Francisco, the largest district, New York, Chicago, Kansas City and Dallas. “All this seems to be lending credence to the argument that the U.S. economy may be stabilizing, albeit at a very low base,” said Edward Meir, an analyst at MF Global Ltd. in Connecticut. “Markets seem to be increasingly desensitized by the poor demand readings as participants seem to be focusing on somewhat more upbeat prospects down the road.” Crude oil for May delivery climbed as much as $1.05, or 2.1 percent, to $50.30 a barrel on the New York Mercantile Exchange. It was at $49.89 a barrel at 9:50 a.m. London time. Prices are up 12 percent so far this year. China’s gross domestic product grew at the slowest pace in almost 10 years, probably marking the low point for world’s second-largest oil consumer. GDP expanded 6.1 percent in the first quarter from a year earlier, the statistics bureau said in Beijing today. That compares with a 6.8 percent gain in the previous three months. 19-Year High Oil inventories rose by 5.67 million barrels to 366.7 million last week, the highest since September 1990, the Energy Department said yesterday. Supplies were forecast to increase by 1.75 million barrels, according to the median of 14 analyst estimates in a Bloomberg News survey. In Cushing, Oklahoma, where New York-traded West Texas Intermediate crude is delivered and a glut had developed, stockpiles fell last week, according to the Energy Department. They fell by 742,000 barrels to 29.2 million, the lowest since the week ended Dec. 26. Gasoline stockpiles declined by 944,000 barrels to 216.5 million in the week ended April 10, according to the department. Distillate fuels, a category that includes heating oil and diesel, fell by 1.17 million barrels to 139.6 million. Daily fuel demand averaged 18.7 million barrels over the past four weeks, down 5.2 percent from a year earlier, according to the department. Refineries operated at 80.4 percent of capacity, down 1.5 percentage points from the week before, the lowest since the week ended Sept. 26, when units were shut in the aftermath of Hurricanes Gustav and Ike, the department said. A gain of 0.1 percentage point was forecast. Brent crude oil for June settlement rose as much as $1.70 cents, or 3.3 percent, to $53.49 a barrel on London’s ICE Futures Europe exchange. It was at $53.05 a barrel at 9:50 a.m. London time.

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