Oil rebounded on speculation that European Union leaders will reach agreement on enhancing their rescue fund and help fight the region’s debt crisis. Futures gained as much as 1.2 percent in London and 1 percent in New York after European Commission President Jose Barroso said government leaders may reach a “very positive outcome” at a meeting this weekend in Brussels. “These are political markets right now,” said Carsten Fritsch, an analyst in Frankfurt at Commerzbank AG. The bank was the fourth most-accurate forecaster of Brent prices in the third quarter. “So oil could be moving on rumors regarding the upcoming EU summit.” Brent oil for December settlement rose as much as $1.25 to $109.64 a barrel and was at $109.45 at 10:45 a.m. on the ICE Futures Europe exchange in London. Crude for December delivery on the New York Mercantile Exchange, the most actively traded contract, was up 45 cents at $86.74 a barrel after falling as much as 1.1 percent to $85.31. To contact the reporter on this story: Grant Smith in London at gsmith52@bloomberg.net To contact the editor responsible for this story: Justin Carrigan at jcarrigan@bloomberg.net

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