Crude oil rose for a second day in New York on optimism the economic recovery is accelerating and as the dollar dropped to the lowest level against the euro in more than a year, bolstering investor demand for commodities. Futures gained as much as 1.6 percent after stocks advanced on Intel Corp.’s forecast for higher sales and company results in Europe and Asia beat estimates. The U.S. currency’s drop sent gold to a record and silver to a 31-year high. The Energy Department will probably report today that crude-oil supplies gained last week and gasoline stockpiles fell. “The dollar continues to weaken and we’re getting strong corporate earnings, which is sending oil higher,” said Addison Armstrong, director of market research at Tradition Energy in Stamford, Connecticut. “As long as the dollar is weak, there will be upward pressure on oil. The market is disconnected from the fundamentals right now.” Crude oil for June delivery climbed $1.20, or 1.1 percent, to $109.48 a barrel at 9:10 a.m. on the New York Mercantile Exchange. The May contract expired yesterday at $108.15. Prices are up 31 percent from a year ago. Brent crude oil for June settlement rose $1.07, or 0.9 percent, to $122.40 a barrel on the London-based ICE Futures Europe exchange. The dollar fell as much as 1.5 percent to $1.4548 per euro, the lowest level since January 2010. The Dollar Index, a measure of the currency versus those of six U.S. trading partners, slid as much as 1 percent to 74.302, the lowest level since Dec. 1, 2009. A drop in the dollar makes commodities priced in the currency more attractive for investors. Middle East Unrest Oil has advanced 20 percent in New York this year. Unrest in the Middle East and North Africa has toppled leaders in Egypt and Tunisia and spread to Libya, Algeria, Bahrain, Iran, Oman, Syria and Yemen. Libyan crude output, which averaged 1.6 million barrels a day last year, shrank to 390,000 barrels a day in March, according to a Bloomberg News survey of producers, analysts and companies. The Energy Department report today may show supplies increased 1.3 million barrels, according to the median of 13 responses in a Bloomberg News survey of analysts. Gasoline inventories probably dropped 1.75 million barrels, the survey showed. To contact the reporter on this story: Mark Shenk in New York at mshenk1@bloomberg.net To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net

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