Crude oil advanced from a two-week low after the dollar dropped, bolstering the appeal of commodities as an alternative investment. Oil gained as much as 1.4 percent as the greenback fell after three days of gains against the common currency. The U.S. Energy Department will probably report today that crude stockpiles climbed last week as fuel supplies fell, according to a Bloomberg News Survey. “Crude in New York firmed overnight as the dollar gave back some of the gains made after a three-day rally,” said Addison Armstrong, director of market research at Tradition Energy, a Stamford, Connecticut-based procurement adviser. “Oil is also reacting to the positive tone emanating from European bourses and firmer S&P 500 futures.” Crude oil for November delivery rose 31 cents, or 0.4 percent, to $79.80 a barrel at 9:08 a.m. on the New York Mercantile Exchange. Oil gained as much as $1.12 to $80.61 earlier today. The November contract expires today. More-active December futures increased 14 cents to $80.30. Brent crude oil for December settlement gained 59 cents, or 0.7 percent, to $81.69 a barrel on the London-based ICE Futures Europe exchange. Futures in New York tumbled 4.3 percent yesterday, the biggest drop since Feb. 4, after an unexpected rate increase by China’s central bank raised speculation that fuel demand might drop in the world’s biggest energy-consuming country. The dollar retreated on speculation Federal Reserve policy makers will take more credit-easing measures. The U.S. currency dropped 0.9 percent to $1.3844 to the euro. To contact the reporter on this story: Mark Shenk in New York at mshenk1@bloomberg.net To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net.

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