Oil gained 0.4 percent on U.S. report & Crude oil Rose on U.S rate

Oil gained 0.4 percent on U.S. report and showed that German business confidence unexpectedly rose to a record in December. Fuel consumption U.S. rose 6.5 percent in November from a year earlier, according to a report released today by the American Petroleum Institute.

Crude oil rose on U.S. rate leading economic indicators rose in November by the most in eight months, a sign that the recovery will strengthen next year and increase demand for fuel.

"Right now, the oil market is taking its cues from the expectations of global and national economic growth," said Jason Schenker, president of Prestige Economics LLC, an energy consultancy in Austin, Texas. "A large number of leading economic indicators provides additional support to bullish growth prospects."

Crude for January delivery rose 32 cents to settle at $ 88.02 a barrel on the New York Mercantile Exchange. Futures climbed 0.3 percent this week and 11 percent this year.

U.S. index leading economic indicators, an indicator of the headquarters in New York The Conference Board, the prospects for the next three to six months, rose 1.1 percent to the highest level since March. U.S. is the largest country in the world of oil it consumes.

Other signs of growth, the Ifo institute, based in Munich, said its business climate index, based on a survey of 7,000 executives, rose to 109.9 from 109.3 in November. That's the highest level since records of the reunified Germany began in 1991. Economists forecast a drop to 109, the median of 36 forecasts in a survey.

U.S. Fuel demand

Total deliveries of petroleum products, a measure of demand, rose to 20 million barrels a day last month from 18.8 million in November 2009, according to the API. Consumption during the first 11 months of 2010 rose 2.4 percent to 19.2 million barrels a day.

"The upturn in demand is a very good sign about the economic recovery," said John Felmy, chief economist at the Washington-based API, in a telephone interview. "There has been a steady rise in demand for industrial fuels this year."

Total products supplied, a measure of U.S. demand for fuel, rose 1 percent to 20.2 million barrels last week, the highest level since January 2009, according to a report from the Department Energy 15 December.

Brent crude for February settlement gained 7 cents to $ 91.67 a barrel on the ICE Futures Europe exchange in London.

Dollar strengthens

"People are saying the economy is improving, and if that's the point, which should lead to more high demand for oil, or trade the U.S. dollar more than the people more confidence" said Jonathan Barratt, managing director of brokerage services for commodities in Sydney.

The dollar gained 0.5 percent to $ 1.3173 per euro at 3:05 pm in New York from $ 1.3244 yesterday after Ireland's credit rating five levels was reduced today by Moody's Investors Service. The currency has advanced 3.7 percent in the last four weeks.

Moody's downgraded to Baa1 from Aa2 Ireland, three levels above non-investment grade, and said further downgrades are possible.

The Thomson Reuters / Jefferies CRB Index of 19 commodities advanced today with a 26-month, led by sugar and coffee. He earned as much as 1.2 percent, to 321.04, the highest intraday level since October 6, 2008. Was 1 percent to 320.62 at 3:05 pm in New York. All commodities in the rate of increase.

Trading range

Oil futures have traded in a range of less than $ 3 a barrel in December and changed direction every day from 09 December.

"It's all about cash flow, and we'll be following the dollar and equities," said Kyle Cooper, director of research at IAF Advisors in Houston. "Just the same sort of market to go sideways. No one wants to go above $ 90 or under $ 85."

Oil may reduce next week on speculation U.S. Department of Energy will report an increase in supplies after the biggest decline in more than eight years in the data this week.

Eighteen of 34 analysts and traders, or 53 percent, crude fall forecast by 23 December. Nine of the respondents, or 26 percent, predicted that prices would rise and seven estimates there will be little change.

U.S. Crude inventories fell 9.85 million barrels in the week ended Dec. 10 to 346 million, according to the Department of Energy. Supplies are 7.2 percent above the average of five years, according to government report on 15 December.

"The physical market is tightening a bit with the cooler temperatures," said Tobias Mera, product manager at Credit Suisse Group in Zurich. "But looking further ahead, inventories remain high, so I do not know much more upside there. The prices will remain around $ 90."

volume of oil in electronic commerce on the Nymex was 540,208 contracts in New York 15:05. Volume was 657,203 contracts yesterday, 3.5 percent below the average of the last three months. Open interest was 1.37 million contracts.