Bloomberg Crude Oil Rises to 5-Month High as Pending Home Sales Increase

May 4 (Bloomberg) -- Crude oil rose to a five-month high as the number of Americans signing contracts to buy previously owned homes jumped along with spending on U.S. construction projects, signaling energy demand may improve with the economy.

Oil climbed 2.4 percent and the Standard & Poor’s 500 Index erased its 2009 loss as the National Association of Realtors’ index of signed purchase agreements jumped for a second month.

“People are pinning their thoughts on things getting better as we go through the year,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “The market seems to be looking forward rather than at what’s immediately overhanging.”

Crude oil for June delivery rose $1.27 to $54.47 a barrel at 2:43 p.m. on the New York Mercantile Exchange, the highest settlement since Nov. 24. Oil is up 22 percent this year.

Spending on U.S. construction unexpectedly rose in March for the first time in six months as increases in commercial and government projects overshadowed a drop in home building.

Crude oil also increased as the dollar fell against the euro for a second day. The euro strengthened as much as 1.2 percent to $1.3425. It gained 1.31 cents to $1.3404 at 4:08 p.m. in New York.

The S&P 500 climbed to the highest level in almost four months. It added 29.72, or 3.4 percent, to 907.24. The index is up 0.4 percent for the year. The Dow Jones Industrial Average gained 214.33 points, or 2.6 percent, to 8,426.74. Stocks in Europe and Asia also increased. more...