By Mark Shenk June 15 (Bloomberg) -- Crude oil rose as the euro gained against the dollar, bolstering the appeal of commodities, and on forecasts that a government report will show U.S. supplies fell for a third week. Oil climbed as much as 1.5 percent after the 16-nation currency strengthened, following increases in global stock markets. U.S. crude-oil inventories probably declined 1.05 million barrels in the week ended June 11, according to the median of 12 analyst responses in a Bloomberg News survey. “The euro is higher and oil is following,” said Stephen Schork, president of consultant Schork Group Inc. in Villanova, Pennsylvania. “There’s been a very strong correlation between currencies and oil recently.” Crude oil for July delivery rose $1.06, or 1.4 percent, to $76.18 a barrel at 10:33 a.m. on the New York Mercantile Exchange. Futures are up 7.9 percent from a year ago. Brent crude oil for July settlement climbed 55 cents, or 0.7 percent, to $75.75 a barrel on the London-based ICE Futures Europe exchange. The July contract expires today. The more active August future increased 38 cents, or 0.5 percent, to $76.04 a barrel. The euro strengthened to $1.2272, up 0.4 percent from $1.2221 yesterday. The currency touched $1.1877 on June 7, the lowest level since March 2006, on concern that the debt crisis in Greece will spread to other countries in the region. “The bulls are trying to move oil higher, and they’ve been getting intermittent support from the euro and dollar,” said Peter Beutel, president of energy adviser Cameron Hanover Inc. in New Canaan, Connecticut. Technical Indicator Oil in New York has been below the 200-day moving average for the past month. A settlement above that point, which stands at $76.77, would be a technical indicator that prices will extend increases, while a failure would signify that prices will drop, Schork said. The Energy Department will probably report that gasoline inventories rose 250,000 barrels last week, the Bloomberg News survey showed. The department is scheduled to release its weekly report tomorrow at 10:30 a.m. in Washington. The industry-funded American Petroleum Institute is scheduled to release its supply report today. Manufacturing in the New York region expanded in June at a faster pace, signaling factories are weathering the turmoil in financial markets and driving the economic recovery. The Federal Reserve Bank of New York’s general economic index rose to 19.6, an 11th consecutive month of growth and in line with the median forecast of economists surveyed by Bloomberg News. To contact the reporter on this story: Mark Shenk in New York at mshenk1@bloomberg.net

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