Crude Oil Extends Gains on Signs of Global Economic Recovery

April 30 (Bloomberg) -- Crude oil advanced for a third day after European economic confidence increased and unemployment claims in Germany and the U.S. declined, adding to signs the global economy is rebounding.

Oil, which is poised for a second week of gains, rose yesterday after the European report showed the euro-area recovery is strengthening even as Greece’s fiscal crisis spreads across the region. Refineries in the U.S. operated at the highest level in almost two years last week, the Energy Department said April 29 in a report.

“There are sources of uncertainty in the market that have threatened to derail confidence in the economic recovery, but we are still seeing an encouraging flow of data in the U.S. and elsewhere,” said Toby Hassall, a commodity analyst at CWA Global Markets Pty in Sydney. “There seemed to be a little less concern with events unfolding in Europe.”

Crude oil for June delivery rose 30 cents, or 0.4 percent, to $85.47 a barrel, in electronic trading on the New York Mercantile Exchange at 10:20 a.m. Sydney time. Yesterday, the contract climbed $1.95, or 2.3 percent, to $85.17. Futures are poised for a 0.4 percent gain for the week and a 2 percent advance for April, marking the third month of gains.

Oil also rose as U.S. jobless claims fell to a one-month low, and German unemployment declined at the fastest pace in more than two years.

In Germany, the region’s largest economy, unemployment decreased 68,000 to 3.29 million in April. Economists had forecast a drop of 10,000, based on the median estimate of 30 analysts surveyed by Bloomberg. U.S. initial jobless claims fell by 11,000 to 448,000 in the week ended April 24, in line with the forecast of economists in a separate Bloomberg survey.

OPEC Shipments

The Organization of Petroleum Exporting Countries, supplier of about 40 percent of the world’s oil, will ship 23.3 million barrels a day in the four weeks to May 15, compared with 23.36 million in the month ended April 17, according to tanker-tracker Oil Movements.

The second supply reduction will come after Asian refiners cut imports and shut plants for maintenance, the consultant said. The drop reported last week was the first since March 20. The data exclude Ecuador and Angola.

U.S. inventories of crude oil rose 1.96 million barrels to 357.8 million last week, the highest level since June, the Energy Department reported this week. Stockpiles were forecast to climb 1 million barrels, according to a Bloomberg News survey. Imports increased 0.7 percent to 9.68 million barrels a day, the most since September.

Brent crude for June settlement traded at $87.02 a barrel, up 12 cents, on the London-based ICE Futures Europe exchange at 10:23 a.m. Sydney time. Yesterday, the contract gained 74 cents, or 0.9 percent, to $86.90.