Oil gained in New York, paring this week’s decline after a European Central Bank pledge that the euro will survive reassured investors and boosted the currency. Futures rebounded, advancing as much as 1.3 percent, after ECB President Mario Draghi signaled that officials are prepared to do whatever is needed to preserve the euro and act on surging bond yields that are tearing at the seams of the 17-nation currency bloc. Oil has lost 1.8 percent this week. Data yesterday from the U.S. Energy Department showed crude inventories climbed by 2.7 million barrels. Supplies were forecast to decline by 1 million barrels, according to a Bloomberg News survey. “The biggest problem of this market is a lack of trust, and Draghi’s comments are bringing the back that trust, and with it, confidence,� said Eugen Weinberg, head of commodity market research at Commerzbank AG in Frankfurt. Crude for September delivery rose as much as $1.18 to $90.15 a barrel in electronic trading on the New York Mercantile Exchange and was at $89.91 at 12:20 p.m. London time. It had fallen 90 cents to $88.07 a barrel. The contract yesterday rose 47 cents to $88.97, the highest close since July 20. Prices are 9 percent lower this year. Brent oil for September settlement on the London-based ICE Futures Europe exchange rose 95 cents at $105.33 a barrel. The European benchmark crude was at a $15.42 premium to the New York contract. The spread closed at $15.41 yesterday, the widest in seven weeks. The euro increased 0.9 percent to $1.2272 after weakening by 0.3 percent to $1.2118. -- Editors: John Buckley, Rachel Graham To contact the reporter on this story: Grant Smith in London at gsmith52@bloomberg.net To contact the editor responsible for this story: Stephen Voss on sev@bloomberg.net

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