Oil rose for a second day in New York on speculation that Greek Prime Minister George Papandreou will win a confidence vote today, moving the nation a step closer to avoiding a default on its debt. Futures climbed as much as 1.6 percent as the euro strengthened against the dollar after European leaders said a Greek default can be avoided. The weaker U.S. currency boosted the appeal of commodities as an alternative investment. The Standard & Poor’s 500 Index advanced for a fourth day, its longest rally in three weeks. “If the Greeks can pass the confidence vote, the effect on equities and the dollar will provide more support for oil prices in the medium-term,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. Oil for July delivery rose 81 cents, or 0.9 percent, to $94.07 a barrel at 9:40 a.m. on the New York Mercantile Exchange. Futures have advanced 21 percent in the past year. The July contract expires today. The more actively traded August futures gained 94 cents, or 1 percent, to $94.57 a barrel. Brent oil for August delivery increased 20 cents to $111.89 a barrel on the London-based ICE Futures Europe exchange. Prices have advanced 42 percent in the past year. European Union leaders have insisted Papandreou gain multiparty support for austerity measures that are a condition for the aid needed to avoid default as soon as next month. The euro gained 0.4 percent against the dollar to $1.4365 in New York. Earlier, it touched $1.4388, the highest level since June 15. The S&P 500 advanced 0.4 percent to 1,283.30, and the Dow Jones Industrial Average increased 44.54 points, or 0.4 percent, to 12,124.92. Oil Inventories U.S. crude supplies probably fell last week for the third consecutive time, according to the median of 15 analyst estimates in a Bloomberg News survey. U.S. inventories dropped 1.75 million barrels, or 0.5 percent, to 363.8 million in the seven days ended June 17, according to the analysts surveyed before the Energy Department’s report. Twelve of the respondents forecast a decline, two projected a gain and one said there was no change. The Energy Department is scheduled to release its supply report at 10:30 a.m. tomorrow in Washington. The industry-funded American Petroleum Institute will report its own data today. To contact the reporter on this story: Margot Habiby in Dallas at mhabiby@bloomberg.net. To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net.

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