Crude oil Climb as Index Consumer Sentiment Rose

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Crude oil climbed 1.2 percent as the University of Michigan preliminary index of consumer sentiment for November rose to 64.2, higher than economists’ projection of 61.5. Oil also rose today as Italy’s Senate approved a key budget bill to clear the way for new leadership and Greece formed a unity government. Oil gained, capping the longest streak of weekly advances since April 2009, on speculation that U.S. economic growth and Europe’s efforts to contain the debt crisis will boost fuel demand.

“The fundamentals in the oil market have been pretty good and demand is strong enough to tighten the balance,” said Katherine Spector, a commodities strategist with CIBC World Markets Corp. in New York. “Europe is still a tug-of-war in the oil market and people are watching the headlines.”

Crude for December delivery climbed $1.21 to $98.99 a barrel on the New York Mercantile Exchange, the highest settlement since July 26. Oil increased 5 percent this week, the sixth weekly increase.

Brent oil for December settlement rose 45 cents, or 0.4 percent, to settle at $114.16 a barrel on the London-based ICE Futures Europe exchange. The contract was at a premium of $15.17 to New York futures, the lowest level since June 24.

“The market continues to rise on any kind of positive economic news,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “Europe is not completely out of the woods, but they seemed to have dodged the bullets for this time around.”