Oil rose to the highest in almost three months in New York before European leaders meet to agree on a blueprint to tackle the region’s sovereign debt crisis.
Prices climbed as much as 0.4 percent, gaining for a fourth day. European government heads will hold a summit today to agree on a plan to rein in a crisis that threatens to curb economic growth and slow demand for commodities. December futures traded at a premium to the January contract, a so-called backwardation that typically signals an increase in demand or decline in supply in the near term.
“The market has run up quite a lot in advance” of the summit, said Ric Spooner, a chief market analyst at CMC Markets in Sydney. “The market has been re-pricing a view that we might be looking at a low-growth environment, rather than a recessionary environment.”
Crude oil for December delivery was at $93.49 a barrel, up 32 cents, in electronic trading on the New York Mercantile Exchange at 3:33 p.m. Sydney time. The contract yesterday increased 2.1 percent to $93.17, the highest settlement since Aug. 2. Prices are up 2.3 percent this year.
December futures were at a 19-cent premium to January, compared with 24 cents at yesterday’s close. The front-month contract on Oct. 24 settled higher than the next month for the first time since Nov. 20, 2008, after U.S. stockpiles shrank.
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