Crude oil rose for a second day as stronger-than-forecast economic growth in the euro zone signaled that European fuel consumption will increase. Futures climbed as much as 1.8 percent after the European Union’s statistics office in Luxembourg said gross domestic product in the 17-nation region accelerated to 0.8 percent from 0.3 percent, beating the 0.6 percent median forecast in a Bloomberg News survey. The rising waters of the Mississippi River threaten to flood Louisiana refineries and oil wells. “Strong European numbers show that economic growth is back on track,” said Carl Larry, director of energy derivatives and research at Blue Ocean Brokerage LLC in New York. “Gasoline is showing greater strength on fears that the Mississippi flooding will cut output.” Crude for June delivery increased 31 cents, or 0.3 percent, to $99.28 a barrel at 9:32 a.m. on the New York Mercantile Exchange. Prices are up 2.2 percent this week and 33 percent in the past year. Gasoline for June delivery rose 2.61 cents, or 0.9 percent, to $3.09 a gallon in New York. The oil market is “structurally bullish,” Jeffrey Currie, the London-based head of commodity research at Goldman Sachs Group Inc., said in an interview. “Long-term and medium-term we’re still structurally bullish,” Currie said today in London. Volatility in oil prices will begin to stabilize next month and prices are likely to be higher in 12 months, he said. Germany and France powered economic growth in the euro area in the first quarter as booming exports fueled domestic spending in the bloc’s core, offsetting turmoil sparked by sovereign debt woes in Greece, Ireland and Portugal. German GDP German GDP jumped 1.5 percent from the fourth quarter and the French GDP rose 1 percent, exceeding economists’ median forecasts of 0.9 percent and 0.6 percent respectively. Austria’s economy grew by 1 percent and the Netherlands’ by 0.9 percent. The Mississippi River may affect 10 percent of Louisiana’s onshore crude oil production, said Matt Ross, communications director for the Louisiana Oil & Gas Association. Opening the state’s Morganza spillway to alleviate flooding may affect 2,264 oil wells that produce 19,278 barrels a day, he said. About 150 companies are preparing for an onslaught of water should the spillway be opened, Ross said. The work includes removing lease equipment and adding markers to wells. Brent oil for June settlement rose $1.11, or 1 percent, to $114.09 a barrel on the London-based ICE Futures Europe exchange. 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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