Oil advanced to trade near its highest in three weeks in New York on speculation that proposals on European bank recapitalisation will support economic growth and fuel consumption. Futures rose for a sixth day, their longest winning streak this year. European Commission President Jose Barroso is due to outline plans in Brussels on Wednesday.
The International Energy Agency, which on Wednesday cut forecasts for global oil demand in 2012, said recent data does not signal a downward consumption spiral.
Crude oil for November delivery on the New York Mercantile Exchange rose as much as 78 cents, or 0.9 per cent, to $86.59 a barrel and was at $86.49 at 11:14 am London time. The contract yesterday climbed as high as $86.64, the highest price since September 21. Prices are down 5.4 per cent this year.
Brent oil for November settlement rose $1.20 to $111.93 on the London-based ICE Futures Europe exchange. The European benchmark contract was at a premium of as much as $25.70 to US crude, the most since September 15.