Oil rebounded from near its lowest in five months in New York after manufacturing in the region for May exceeded forecasts.
West Texas Intermediate advanced as much as 0.7 percent after the Federal Reserve Bank of New York’s general economic index increased to 17.1 this month from 6.6 in April. The median estimate in a survey of Bloomberg economists called for an increase to 9. Crude supplies in the U.S. probably climbed 1.5 million barrels last week to 381 million, the most since August 1990, according to a Bloomberg News survey before government data tomorrow.
“The build-up of inventories in the U.S. is something to consider, but the other side of the coin is that the U.S. economy has shown impressive signs of recovery,” said Christopher Bellew, a senior broker at Jefferies Bache Ltd in London.
Crude for June delivery was at $95.47 a barrel, 66 cents higher in electronic trading on the New York Mercantile Exchange at 1:38 p.m. London time. Prices dropped 1.4 percent to $94.78 yesterday, the lowest close since Dec. 19.
Brent for June settlement gained $1.02 to $112.59 a barrel on the London-based ICE Futures Europe exchange. The European benchmark contract’s premium to West Texas Intermediate was $17.22, compared with $16.79 yesterday.
Prices rose in London as Germany’s faster-than-estimated economic growth helped the euro area avoid its second recession in three years.
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