Oil rebounded from its biggest decline in more than three weeks amid speculation that economic indicators from Japan and the U.S. will signal increasing demand for fuel. Crude rose as much as 0.8 percent, following a 3.3 percent drop on Nov. 12, after a report showed gross domestic product in Japan grew more than forecast in the third quarter as consumer spending increased. U.S. data to be published today will probably show October retail sales rose for a fourth month, according to a Bloomberg survey of analysts. “Stronger-than-expected GDP data out of Japan is supporting the outlook for oil demand this morning, helping the market recover from the carnage at the end of last week,” said Robert Montefusco, senior broker with Sucden Financial in London. Oil for December delivery rose as much as 68 cents to $85.56 a barrel on the New York Mercantile Exchange and was at $85.52 at 11:36 a.m. London time. Brent crude for December settlement was up 63 cents at $86.79 on the ICE Futures Europe exchange in London. The December Brent contract expires today. The more actively traded January future was up 73 cents at $87.26 a barrel. Japan’s economy increased an annualized 3.9 percent in the three months ended Sept. 30, the Cabinet Office said in Tokyo today. The median forecast of 21 economists surveyed by Bloomberg News was for a 2.5 percent gain. Japan is the world’s third-largest oil consumer, after the U.S. and China. “It gives further evidence of that Asian recovery,” said Ben Westmore, a minerals and energy economist at National Australia Bank Ltd. in Melbourne. “You’ve seen the recovery in China and the positive spill-over effects for those economies in the Asian region. Up until now, you haven’t really seen it as much in Japan.” U.S. Retail Sales A forecast increase in U.S. retail sales in the U.S. probably rose in October for a fourth month may show consumers are playing a bigger role in the recovery, economists said. The projected 0.7 percent gain in purchases is based on the median estimate of 67 economists surveyed by Bloomberg News and would follow a 0.6 percent advance the prior month. Other figures today may show businesses boosted stockpiles, and manufacturing in the New York region expanded. Oil dropped 2.3 percent last week on speculation China will raise interest rates, damping growth in the world’s biggest energy consumer. Such steps to cool the economy may damp fuel prices, according to John Vautrain, a senior vice president at energy consultants Purvin & Gertz Inc. in Singapore. “The Chinese government is interested in tapering the economy a bit,” he said. Chinese demand for fuel has surged this year. Oil processing rose to a record last month after refiners increased production to ease a domestic fuel shortage. Plants refined 37 million metric tons, or about 8.8 million barrels a day, in October, up 12 percent from a year earlier, China Mainland Marketing Research Co. said Nov. 11. To contact the reporter on this story: Grant Smith in London at gsmith52@bloomberg.net To contact the editor responsible for this story: Stephen Voss on sev@bloomberg.net

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