By Paul Burkhardt June 9 (Bloomberg) -- Crude oil rose for a second day after an industry report showed a decline in inventories and the dollar weakened, increasing the appeal of commodities as an alternative investment. Oil climbed as much as 3 percent after the American Petroleum Institute reported U.S. inventories slipped 4.54 million barrels last week to 358.2 million, the biggest decline since the week ended Dec. 4. The dollar fell as much as 0.5 percent versus the euro. “The draw is looked upon as a hopeful sign that demand is returning,” said Mike Fitzpatrick, vice president of energy at MF Global in New York. “The dollar retreating a little bit also gave some strength to oil.” Crude oil for July delivery rose $2.10, or 2.9 percent, to $74.09 a barrel at 9:33 a.m. on the New York Mercantile Exchange. Futures have climbed 5.8 percent in the past year. Energy Department data today will probably also show a second weekly decline, according to a Bloomberg News survey. The government report will show crude stockpiles fell 900,000 barrels in the seven days ended June 4 from 363.2 million the week before, according to the median of 15 analysts’ estimates. The department is scheduled to release its supply data at 10:30 a.m. in Washington today. Morgan Stanley reiterated its forecast that West Texas Intermediate will end the year at $95 a barrel, in a report dated yesterday. Brent crude for July delivery gained $1.57, or 2.2 percent, to $73.87 a barrel on the ICE Futures Europe exchange in London. To contact the reporter on this story: Paul Burkhardt in New York at pburkhardt@bloomberg.net.

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