Crude oil climbed for a second day as stronger-than-forecast economic growth in the euro zone signaled that European fuel consumption will increase. Futures rose 0.7 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 refineries and oil wells in Louisiana. “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. Crude oil for June delivery increased 68 cents to $99.65 a barrel on the New York Mercantile Exchange. Prices advanced 2.5 percent this week and are up 34 percent in the past year. Brent oil for June settlement rose 85 cents, or 0.8 percent, to end the session at $113.83 a barrel on the London- based ICE Futures Europe exchange. Oil in New York climbed as much as 1.8 percent and dropped as much as 1.9 percent today. The contract has traded in a $20.20 range over the last two weeks. “The market is going to continue trading on either side of $100 until we get a strong sign that will push prices out of the range,” said Carl Larry, director of energy derivatives and research at Blue Ocean Brokerage LLC in New York. ‘Structurally Bullish’ The oil market is “still structurally bullish,” Jeffrey Currie, the London-based head of commodity research at Goldman Sachs Group Inc., said today. 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 concern in Greece, Ireland and Portugal. 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. “Overnight we had stronger-than-expected economic data from Europe,” said Phil Flynn, vice president of research at PFGBest in Chicago. “The recovery there is broad-based, with many countries experiencing growth.” Morganza Spillway Louisiana Governor Bobby Jindal said it is “extremely likely” the Morganza spillway will be opened in the next 48 hours, inundating the Atchafalaya River basin. The Mississippi River Commission hasn’t made an official announcement. Jindal said at a press conference in Baton Rouge that “we are proceeding on the assumption that the spillway is going to be opened tomorrow or Sunday.” Opening the spillway may affect 2,264 oil wells that produce 19,278 barrels a day, said Matt Ross, communications director for the Louisiana Oil & Gas Association. 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. Crude oil retreated from the day’s highs as U.S. equities fell and the dollar advanced against the euro, reducing the appeal of commodities to investors. The Standard & Poor’s 500 Index slipped 0.8 percent to 1,338.58, and the Dow Jones Industrial Average dropped 104.11 points to 12,591.81 at 3:25 p.m. Dollar Index The Dollar Index, which tracks the greenback against the currencies of six major U.S. trading partners including the euro, yen and pound, climbed 0.7 percent to 75.776 after touching 75.949, the highest level since April 5. The dollar surged 1.1 percent to $1.4096 per euro, and touched $1.4067, the highest level April 1. Libyan leader Muammar Qaddafi is probably no longer in Tripoli and may be injured, Italian Foreign Minister Franco Frattini said, as the North Atlantic Treaty Organization extended its bombardment of the regime’s military. Rebels claimed to have taken control of Misrata and made advances on the strategic oil town of Brega along the central coast. “The Libyan rebels are advancing, which may signal they are headed for victory,” said Addison Armstrong, director of market research at Tradition Energy in Stamford, Connecticut. “Once the Libyan conflict comes to an end, there will be less risk premium in the oil price.” Crude oil has climbed as much as 26 percent in New York this year as unrest in the Middle East and North Africa toppled leaders in Tunisia and Egypt and spread to Libya, Algeria, Bahrain, Iran, Syria and Yemen. Oil volume in electronic trading on the Nymex was 585,870 contracts as of 3:37 p.m. in New York. Volume totaled 978,223 million yesterday, 34 percent above the average of the past three months. Open interest slipped to 1.663 million contracts, down from a record 1.664 million the prior day. 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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