Bloomberg Oil Rises, Capping a 3-Month Gain, as Recovery Optimism Grows

April 30 (Bloomberg) -- Crude oil rose, capping a third monthly gain, on signs that the global economy and fuel demand will recover this year.

Oil advanced as stock markets strengthened on better-than- expected earnings and speculation that the worst of the global recession is over. Industrial output in Japan increased for the first time in six months while U.K. consumer confidence climbed to the highest level in a year. Prices fell earlier on concern that the spread of influenza will cut fuel demand.

“There are increasing signs that the economy is starting to get better,” said Bill O’Grady, chief markets strategist at Confluence Investment Management in St. Louis. “In the end this should be more important than the disruption caused by the flu.”

Crude oil for June delivery rose 15 cents, or 0.3 percent, to settle at $51.12 a barrel at 2:47 p.m. on the New York Mercantile Exchange. Prices gained 2.9 percent in April and are up 15 percent this year.

Other commodities also climbed. The Reuters/Jefferies CRB Index of 19 commodities rose 1.22 points, or 0.6 percent, to 222.39, the highest since April 17.

Mexico has been the focal point of the outbreak of the swine flu virus. The World Health Organization has confirmed cases in 11 countries, including the U.S. Twenty states have identified probable or confirmed cases of swine flu.

Trading Range

Futures in New York traded between $43.83 and $53.90 this month as inventories climbed and equities rebounded on speculation the economy will soon rebound.

“This market doesn’t want to move far from $50,” said Tom Bentz, a senior energy analyst at BNP Paribas Commodity Futures Inc. in New York. “We’ve have been tracking the stock market a lot lately.” more...