Oil rose for the first time in three days in New York as U.S. retail sales fell less than expected and equities rallied. Crude rose as much as 1 percent after purchases dropped 0.2 percent in May, less than economists estimated, Commerce Department figures showed in Washington. The Standard & Poor’s 500 Index advanced the most since April. New York-traded oil touched a record discount to London’s Brent. “The market was bracing itself for something worse,” said Matt Smith, a commodities analyst for Summit Energy Services Inc. in Louisville, Kentucky. “Equities are off to a decent rally. Buying interest is coming into the crude complex.” Crude for July delivery gained 74 cents, or 0.8 percent, to $98.04 a barrel at 10:36 a.m. on the New York Mercantile Exchange. Earlier, prices fell as much as 0.8 percent to $96.51. Futures have gained 31 percent in the past year. Brent oil for July delivery rose $1.19, or 1 percent, to $120.29 a barrel on the London-based ICE Futures Europe exchange. The front-month European benchmark contract was at a premium of $22.25 to U.S. futures after reaching a record $22.79 earlier. Oil declined earlier as China, the world’s largest energy user, ordered lenders to set aside more cash as reserves after inflation accelerated to the fastest pace in almost three years. “The market rallied off the economic data, but the Chinese are continuing on their tightening pace,” said John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy. The S&P 500 index (SPX) rose 1.3 percent to 1,287.83, the biggest one-day rally since April 20. The Dow Jones Industrial Average gained 139.33 pints, or 1.2 percent, to 12,092.30. The dollar fell 0.4 percent to $1.447 per euro at 10:34 a.m. in New York. A weaker dollar boosts the appeal of commodities as an alternative investment. To contact the reporter on this story: Margot Habiby in Dallas at mhabiby@bloomberg.net. To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net.

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