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, compared with a forecast decline of 1 million barrels. “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, who predicts any further gains in oil will be capped by “plentiful� supplies. 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 $89.70 at 12:59 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 have lost 1.8 percent this week. Brent oil for September settlement on the London-based ICE Futures Europe exchange rose 89 cents to $105.27 a barrel. The European benchmark crude was at a $15.57 premium to the New York contract. The spread closed at $15.41 yesterday, the widest in seven weeks. New Measures Economists said Draghi’s comments suggest the ECB may be preparing to unveil new measures to fight the crisis as potential bailouts for economies the size of Spain and Italy threaten to overwhelm Europe’s rescue funds. The euro gained 0.9 percent to $1.2264 after losing 0.3 percent to $1.2118. Oil in New York has technical support around $86 a barrel, along the lower of two so-called leading span lines that define an “ichimoku cloud� on the daily chart, according to data compiled by Bloomberg. That’s an area where buy orders tend to be clustered. Crude started a descent in early May to an almost nine-month low after falling out of an ichimoku cloud. Gasoline stockpiles rose 4.1 million barrels in the week ended July 20 to 210 million, the highest in three months, the Energy Department report showed yesterday. Distillate inventories, a category that includes heating oil and diesel, climbed 1.7 million barrels to 125 million, according to the Energy Department. “Our industry continues to see significant price volatility as a result of economic and political developments,� Peter Voser, chief executive officer of Royal Dutch Shell Plc (RDSA), said today in the company’s second-quarter earnings statement. -- Editors: John Buckley, Raj Rajendran 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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