Oil advanced in New York, rebounding from the biggest drop this month, after European leaders agreed on measures to tame a sovereign debt crisis that threatens to slow economic growth and curb commodity demand. Futures climbed as much as 2 percent after yesterday sliding 3.2 percent. Officials in Europe persuaded bondholders to take 50 percent losses on Greek debt and boosted a bailout fund to 1 trillion euros ($1.4 trillion). A report today may show the U.S. economy expanded at the fastest pace this year in the third quarter. U.S. fuel stockpiles declined last week even as crude inventories rose, Energy Department data showed. “The risks have shifted to the upside somewhat,” said Michael McCarthy, a chief market strategist at CMC Markets Asia Pacific Pty Ltd. in Sydney. “It appears the picture we had of the global economy moving back into recession was overdone.” Crude oil for December delivery gained as much as $1.84 to $92.04 a barrel in electronic trading on the New York Mercantile Exchange and was at $91.79 at 2:51 p.m. Sydney time. The contract yesterday declined the most in three weeks, sliding $2.97 to $90.20. Prices are up 0.5 percent this year. Brent oil for December settlement rose $1.03, or 1 percent, to $109.94 a barrel on the London-based ICE Futures Europe exchange. The European benchmark contract was at a premium of $18.15 to New York crude, compared with a record of $27.88 on Oct. 14. Europe, U.S. Last-ditch talks with bank representatives led to Europe’s debt-relief accord in an effort to quarantine Greece and prevent speculation against Italy and France from wreaking global economic havoc. French President Nicolas Sarkozy said the bailout fund will be leveraged by four to five times. He plans to call Chinese leader Hu Jintao today to discuss contributions to the fund, a person familiar with the matter said. The U.S. economy probably grew at an annual rate of 2.5 percent last quarter, according to the median forecast of 68 economists surveyed by Bloomberg News before the Commerce Department report today. Gasoline supplies slipped 1.35 million barrels last week and stockpiles of distillate fuel, a category that includes heating oil and diesel, fell 4.28 million barrels, yesterday’s Energy Department report showed. Refinery utilization climbed 1.7 percentage points to 84.8 percent of capacity after sliding in the prior four weeks. ‘Tight’ Supplies The report also showed crude stockpiles increased 4.74 million barrels last week, more than three times as much as forecast in a Bloomberg survey, prompting yesterday’s slide in prices. Inventories rebounded from a 20-month low as imports increased 18 percent, the biggest gain since September 2008. Global supply is “extraordinarily tight,” creating the risk that prices will exceed forecasts, Goldman Sachs Group Inc. said yesterday. Restrictions on output growth from Libya and Iraq, two of the main sources of additional production, will strain the availability of oil next year, Jeff Currie, Goldman’s head of commodities research, said in London. Brent crude futures may surpass the bank’s 2012 average estimate of $120 a barrel, he said. Fighting in Libya reduced the availability of light, sweet crude, or oil with low density and sulfur content. Supply may rebound to 750,000 barrels a day by the end of the year from 430,000 barrels a day now, Nuri Berruien, chairman of the nation’s state-run National Oil Corp., said Oct. 20. Output was 1.6 million barrels a day in January. Hurricane Rina Oil also rose as Hurricane Rina, a Category 1 storm, moved toward landfall on Mexico’s Yucatan Peninsula. Kinetic Analysis Corp., which assesses the potential impact of hazards, estimated on Oct. 25 that the storm may shut in 6.27 million barrels a day of oil produced by Petroleos Mexicanos, Latin America’s largest oil producer. Pemex said port and offshore operations are normal, according to an e-mail. Crude in New York has technical support along the 100-day moving average at $89.76 a barrel, close to where prices stopped falling yesterday, according to data compiled by Bloomberg. Futures have resistance along the 200-day moving average at $94.75 today. That’s near where futures halted their advance on Oct. 25 after reaching a 12-week high. 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 in Singapore at akwiatkowsk2@bloomberg.net

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