Crude oil rose for the first time in four days as European equity markets climbed to a 12-week high, restoring optimism that fuel consumption will recover. A U.S. Energy Department report today may show oil inventories dropped to a four-month low, falling by 1.73 million barrels from 353.5 million, based on the median estimate of 16 analysts in a Bloomberg News survey. The Stoxx Europe 600 Index rose 0.4 percent to 259.1 at 9 a.m. in London, the highest level since May 3. “It’s a mix of the reporting season and macroeconomic indicators that is driving the market,” said Thina Saltvedt, a commodities analyst at Nordea Bank AB in Oslo. “Some companies are reporting good second-quarter results, and that’s improving risk appetite. The oil market is still improving, but it’s going slowly.” Crude for September delivery was at $77.59 a barrel, 9 cents higher, in electronic trading on the New York Mercantile Exchange at 10:35 a.m. London time. The contract earlier dropped as much as 62 cents, or 0.8 percent, to $76.88. Brent crude for September settlement on the London-based ICE Futures Europe traded at $76.23.

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