By Alexander Kwiatkowski June 4 (Bloomberg) -- Crude oil rose and was poised for a second weekly increase on signs of a recovery in demand in the U.S., the world’s biggest energy consumer. Oil reversed earlier losses before a report that may show American employers added jobs in May for a fifth consecutive month, signaling that the economic recovery may be accelerating. U.S. crude oil stockpiles dropped for the first time in seven weeks and gasoline inventories fell to the lowest this year, the Energy Information Administration reported yesterday. “Positive macro-economic news from the U.S., the decline in crude and gasoline stocks and a rise in risk appetite are supporting prices,” said Carsten Fritsch, a Commerzbank AG analyst in Frankfurt. The jobs data “could trigger the next leg higher if the number is bullish.” Crude oil for July delivery rose as much as 81 cents, or 1.1 percent to $75.42 a barrel and was at $75.11 in electronic trading on the New York Mercantile Exchange at 10:22 a.m. London time. The contract yesterday rose $1.75 to settle at $74.61. Futures are poised for a 1.6 percent gain this week, after gaining 5.6 percent last week. Brent crude oil for July settlement was up 81 cents at $76.22 a barrel on the ICE Futures Europe exchange in Londong. The contract yesterday gained $1.66, or 2.3 percent, to $75.41, the highest settlement since May 14. The U.S. economy, the world’s largest, probably added 536,000 jobs in May, the most since 1983, according to a Bloomberg News survey of economists before a Labor Department nonfarm payrolls report today. Fuel Supplies Commercially held U.S. crude oil stockpiles fell 1.9 million barrels to 363.2 million last week, according to the EIA, a unit of the Energy Department. Inventories were forecast to be unchanged, based on the median estimate from analysts surveyed by Bloomberg News. Supplies at Cushing, Oklahoma, where New York-traded West Texas Intermediate oil is delivered, rose for the 10th time in 11 weeks. “Yesterday’s report was a mixed bag, but the market only looked at the positive factors,” said Commerzbank’s Fritsch. “The decline in crude stocks was mainly driven by lower imports and not higher demand.” Gasoline inventories fell 2.65 million barrels to 219 million before the Memorial Day holiday weekend, the start of the country’s peak summer driving season. Total fuel consumption increased 1.6 percent to 20 million barrels a day, the highest level since Jan. 30, 2009. To contact the reporter on this story: Alexander Kwiatkowski in London at akwiatkowsk2@bloomberg.net

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