“Oil rebounded from the lowest close in almost a month in New York as German investor confidence jumped in December on speculation Europe’s largest economy will gather momentum next year.
Futures rose as much as 0.6 percent after falling for a fifth day yesterday, the longest losing streak since October. The ZEW Center for European Economic Research said its index of investor and analyst expectations climbed to 6.9 from minus 15.7 in November. U.S. crude inventories declined 2.5 million barrels last week, according to a Bloomberg News survey. Industrial output in China rose faster than economists estimated, official data showed Dec. 9.
“Oil demand in China is in better shape than it seemed before,” Carsten Fritsch, an analyst at Commerzbank AG in Frankfurt, said by phone. “U.S. crude inventories are expected to drop and increased German investor confidence could extend the upward move.”
West Texas Intermediate crude for January delivery gained as much as 51 cents to $86.07 a barrel and was at $86.01 a barrel in electronic trading on the New York Mercantile Exchange as of 12:12 p.m. London time. The contract slid 37 cents to $85.56 yesterday, the lowest close since Nov. 15. Prices have fallen 13 percent this year and are headed for the first annual decrease since 2008.
Brent for January settlement on the London-based ICE Futures Europe exchange was at $108.11 a barrel, up 78 cents. The European benchmark crude was little changed at a premium of $22.10 to WTI, near the widest in a week.”
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