Oil traded near a four-day high in New York on speculation U.S. crude supplies dropped to the lowest in more than two months and steps by the Greek government to prevent a debt default will bolster Europe’s economy. Futures fluctuated after climbing the most in six weeks yesterday. Energy Department data today may show U.S. inventories fell 1.5 million barrels last week, according to a Bloomberg News survey. Stockpiles shrank 2.7 million barrels, an industry report indicated. Greek Prime Minister George Papandreou’s plan to cut spending and sell assets is set for a vote in parliament today. “It’s very much a market that’s waiting for more information around the European situation,” said Ben Westmore, a minerals and energy economist at National Australia Bank Ltd. in Melbourne, who predicts oil will average $113 a barrel in the third quarter. “As far as the Greek situation goes it still seems to be a major determinant of movements in these markets.” Crude for August delivery was at $92.90, up 1 cent, in electronic trading on the New York Mercantile Exchange at 1:35 p.m. Sydney time. The contract yesterday gained $2.28, or 2.5 percent, to $92.89, the highest close since June 22. Prices are 22 percent higher the past year and down 13 percent in the second quarter. Brent oil for August settlement was at $108.73 a barrel, down 5 cents, on the London-based ICE Futures Europe exchange. The contract yesterday climbed $2.79, or 2.6 percent, to $108.78. The European benchmark traded at a premium of $15.63 to West Texas Intermediate, the U.S. benchmark grade. The spread reached a record $22.29 a barrel on June 15. Greeks Vote Germany’s biggest banks and insurers will meet with the Finance Ministry in Berlin today as they seek to reach an agreement on their contribution to a Greek aid package, two people with knowledge of the matter said. Greek lawmakers vote first on the austerity package and again later on a measure implementing it. Greek police fired tear gas to disperse protesters in Athens as labor unions shut down government services before the vote on the budget cuts. An Energy Department report today may show U.S. crude inventories fell 1.5 million barrels to 362.3 million in the seven days to June 24 as refiners boosted gasoline output before the Fourth of July holiday, according to the median estimate of 12 analysts surveyed by Bloomberg News. The industry-funded American Petroleum Institute reported that U.S. crude-oil stockpiles slipped 2.7 million barrels to 360.3 million. Tropical Storm The first tropical storm of the Atlantic hurricane season, Arlene, formed in the southwestern Gulf of Mexico and may cause “life-threatening flash floods and mudslides,” the National Hurricane Center said. Arlene is moving west-northwest at 7 miles (11 kilometers) an hour, with a turn toward the west forecast today, the center said in a bulletin posted yesterday at about 8 p.m. New York time. Maximum sustained winds are near 40 miles an hour and are expected to reach 60 miles an hour in the next two days, the center said. A tropical storm becomes a hurricane when its wind speed reaches 74 miles an hour. Petroleos Mexicanos, Mexico’s state-owned oil company and Latin America’s largest crude producer, has wells in the bay. Mexico is the second-largest oil exporter to the U.S. and provided 1.19 million barrels a day in March, the latest month for which U.S. Energy Department figures are available. To contact the reporter on this story: Ben Sharples in Melbourne at bsharples@bloomberg.net To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net

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