Oil rose for the first time in four days in London as threats to supply from storms in the Atlantic and a weakening dollar countered concerns that slowing economic growth will undermine fuel demand. Brent futures rose as much as 1.3 percent as the dollar plunged after the Swiss central bank said it’s setting a minimum franc exchange against the euro. Flood warnings were issued for the U.S. East Coast while Hurricane Katia strengthened to a category 4 storm in the Atlantic. In New York, prices were near their lowest in a week. “In spite of the dire state of western economies, I think demand in China and other emerging nations, the potential for hurricane shut-ins and unrest in the Middle East means prices will go back up,” said Christopher Bellew, a senior broker at Jefferies Bache Ltd. in London, who correctly predicted Brent would be capped at $120 this summer. Brent for October settlement rose as much as $1.39 to $111.47 a barrel and was at $111.25 at 10:18 a.m. on the ICE Futures Europe Exchange. West Texas Intermediate crude for October traded on ICE in London was up $1.35 at $84.87 a barrel. On the New York Mercantile Exchange, WTI for October delivery was down $1.61 from its Sept. 2 close at $84.84 following yesterday’s Labor Day holiday.The dollar weakened 0.9 percent to $1.422 against the euro. Cushing Supplies Crude stockpiles held in floating-roof tanks at Cushing, Oklahoma, the delivery point for WTI oil, rose 2.4 percent on Sept. 1 from Aug. 31, satellite images taken by Longmont, Colorado-based DigitalGlobe Inc. showed. Inventories climbed 850,000 barrels to 35.6 million. The Energy Department said last week that supplies, including floating and fixed tanks, totaled 33.1 million barrels as of Aug. 26. The Department will release this week’s stockpile report on Sept. 8, a day late because of Labor Day. U.S. oil has slumped 27 percent from this year’s high of $114.83 on May 2 amid concern that a slowdown in world growth will curb demand. The Institute for Supply Management’s non- manufacturing index fell to 51 last month, the lowest since January 2010, from 52.7 in July, according to the median of 59 forecasts in a Bloomberg News survey. Fighting in Libya, which began in February, has reduced the availability of light, sweet crude, or oil with low density and sulfur content. The country’s output fell to 45,000 barrels a day last month, according to Bloomberg estimates, compared with 1.6 million barrels the nation pumped in January. To contact the reporters on this story: Ben Sharples in Melbourne at bsharples@bloomberg.net; Ann Koh in Singapore at akoh15@bloomberg.net To contact the editor responsible for this story: Alexander Kwiatkowski in Singapore at akwiatkowsk2@bloomberg.net

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