Oil rose the most in more than five months in New York on speculation fuel demand will increase after Spain requested a European bailout to shore up its banks and China’s imports of crude climbed to a record.
Futures pared gains after advancing as much as 3 percent, the most since Jan. 3. Spain will seek 100 billion euros ($126 billion) from euro-area nations, Economy Minister Luis de Guindos told reporters in Madrid during the weekend. China, the world’s second-biggest crude consumer, increased imports of the commodity in May as costs fell, according to customs data. OPEC may maintain output quotas to keep prices at current levels when the group meets this week, a Bloomberg News survey showed.
Price risks are “shifting more to the upside,” Jeffrey Currie, head of commodities research at Goldman Sachs Group Inc. in New York, said today in a report. “As policy makers continue to address the European debt issue and the economic data stabilizes, markets will move substantially higher.”
Crude for July delivery increased as much as $2.54 to $86.64 a barrel in electronic trading on the New York Mercantile Exchange and was at $84.92 at 11:13 a.m. London time.