By Mark Shenk July 17 (Bloomberg) -- Crude oil rose more than $1 a barrel as construction of single-family dwellings jumped by the most since 2004, a sign the worst of the recession may have passed. Oil increased after the Commerce Department reported that construction of single-family homes climbed 14 percent in June. The report also showed that total housing starts rose to the highest since November. Futures tumbled to $32.40 a barrel in December, a four-year low, as the economic contraction curbed demand, allowing stockpiles to grow. “The housing starts number was frankly great,” said Bill O’Grady, the chief market strategist for Confluence Investment Management in St. Louis. “You are starting to see evidence that the worst of the recession is over.” Crude oil for August delivery rose $1.54, or 2.5 percent, to $63.56 a barrel at 2:50 p.m. on the New York Mercantile Exchange, the highest settlement price since July 6. Oil climbed 6.1 percent this week, the first weekly gain since June 12. Futures are down 57 percent from a record $147.27 a barrel reached on July 11, 2008. Gasoline for August delivery rose 5.64 cents, or 3.3 percent, to end the session at $1.7699 a gallon on the New York exchange. It was the highest settlement since July 2. “Some green shoots may finally be starting to appear, which is good for the market,” said Chip Hodge, who oversees a $9 billion natural-resource-company bond portfolio as managing director at MFC Global Investment Management in Boston. U.S. industrial production fell in June at the slowest pace in eight months, according to a report on July 15, when oil prices increased 3.4 percent.

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