Oil rose for second day in New York as signs of an improving economy in the U.S., the world’s biggest consumer of crude, stoked speculation demand for fuel may increase. Futures for June delivery gained as much as 0.9 percent, extending yesterday’s 0.6 percent increase after the Commerce Department reported housing starts higher than economists forecast. Companies from Intel Corp. to South Korea’s LG Chem Ltd. reported earnings that beat analyst estimates while economic reports today are forecast to show an improving U.S. housing market and rising German producer prices. “We could expect more of an upbeat reporting season and that may feed through to optimism,” said Jonathan Barratt, managing director of Commodity Broking Services Pty in Sydney. Crude oil for June delivery rose as much as 92 cents to $109.20 a barrel in electronic trading on the New York Mercantile Exchange. It was at $109.11 at 12:49 p.m. Singapore time. Yesterday, it added 59 cents to $108.28, the highest since April 15. The May contract, which expired yesterday, gained $1.03 to settle at $108.15. Brent crude for June settlement climbed 55 cents, or 0.5 percent, to $121.88 a barrel on the London-based ICE Futures Europe exchange. Yesterday, it slipped 28 cents, or 0.2 percent, to $121.33. The European benchmark traded at a premium of $13.18 a barrel to U.S. futures yesterday. The difference between front- month contracts in London and New York surged to a record $19.54 on Feb. 21. The spread averaged 76 cents last year. Stronger Equities The Dollar Index, a measure of the currency versus those of six U.S. trading partners, slid for a second day to 74.88, Bloomberg data showed. It is down 5.3 percent since the start of the year. A decline in the dollar makes commodities priced in the U.S. currency more attractive for investors. “The weaker U.S. dollar and stronger equities offset concerns over European sovereign debt and slowing demand from high oil prices,” Mark Pervan, head of commodity research at Australia & New Zealand Banking Group Ltd. in Melbourne, said in a note today. U.S. crude oil stockpiles rose 667,000 barrels last week to 356.1 million, according to the industry-funded American Petroleum Institute. An Energy Department report today may show supplies increased 1.3 million barrels from 359.3 million, according to a Bloomberg News survey of analysts. Gasoline supplies fell 1.8 million barrels to 212.7 million and distillate fuels, including diesel, declined 3.4 million barrels to 146.8 million, the API said. The Commerce Department said work began on 549,000 houses at an annual pace, up 7.2 percent from the prior month and exceeding the 520,000 median estimate of economists surveyed by Bloomberg News. The Standard & Poor’s 500 Index added 0.6 percent to 1,312.62 at the 4 p.m. close in New York. Regional Unrest Syrian activists said at least 18 protesters have died in clashes in the three days since President Bashar al-Assad ordered the Cabinet to make changes aimed at calming dissent. The government blamed terrorists for the violence, saying a general and three relatives were killed. Unrest in the Middle East and North Africa has toppled leaders in Egypt and Tunisia and spread to Libya, Algeria, Bahrain, Iran, Oman, Syria and Yemen. Libyan crude output, which averaged 1.6 million barrels a day last year, shrank to 390,000 barrels a day in March, according to a Bloomberg News survey of producers, analysts and companies. Nigerian President Goodluck Jonathan suspended his interior minister after protests against his election victory killed at least six people in Africa’s biggest oil producer. Clashes between Christians and Muslims broke out for a second day in the northern city of Kaduna, Shehu Sani, head of the Civil Rights Congress, said April 18. To contact the reporter on this story: Ben Sharples in Melbourne at bsharples@bloomberg.net To contact the editor responsible for this story: Clyde Russell at crussell7@bloomberg.net

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