VINACHEM

Oil rose from the lowest level inalmost a week after European finance ministers reached anagreement on aid for Greece, easing concern that Europe’s debtcrisis will derail the economic recovery and curb fuel demand.

Futures advanced as much as 0.4 percent in New York afterslipping 0.6 percent yesterday. Ministers agreed to help Greecemanage its debt burden in talks in Brussels that lasted morethan 12 hours, a European Union official said. It was the fourthround of discussions by ministers on the Greek crisis in twoweeks. U.S. crude inventories probably rose 5000,000 barrels lastweek, according to a Bloomberg News survey of analysts before anEnergy Department report tomorrow.

“Another life line for Greece is supportive for oil, as itshows we are slowly working our way through the euro crisis,”said Jeremy Friesen, a commodity strategist at Societe GeneraleSA in Hong Kong. “Improvements in the euro crisis should bepositive for the euro and thus could also add some weaker-dollarsupport to oil prices.”

Crude for January delivery gained as much as 35 cents to$88.09 a barrel in electronic trading on the New York Mercantile Exchange and was at $88 at 10:58 a.m. Singapore time. Thecontract decreased 54 cents yesterday to $87.74, the lowestsince Nov. 21. Prices are down 11 percent this year.

Brent for January settlement advanced 20 cents to $111.12 abarrel on the London-based ICE Futures Europe exchange. TheEuropean benchmark contract was at a premium of $23.11 to WestTexas Intermediate, compared with $23.18 yesterday.

Greece Deal

International Monetary Fund Managing Director Christine Lagarde told reporters after the Brussels meeting that her aimto get Greece’s debt on a “sustainable path” was achieved intoday’s discussions. IMF criticism of Europe’s failure to do sohad held up an accord.

The European currency rose as much as 0.3 percent to$1.3009, the highest since Oct. 31. A stronger euro and weaker US dollar increase the appeal of dollar-denominated rawmaterials as an investment.

The European Union accounted for 16 percent of the world’soil consumption last year, according to BP Plc (BP/)’s StatisticalReview of World Energy. The U.S. and China were the world’sbiggest crude users, accounting for a combined 32 percent.

U.S. gasoline supplies probably rose 1 million barrels,according to the median of five analyst estimates in theBloomberg survey before the Energy Department report.Distillates, a category that includes heating oil and diesel,rose 500,000 barrels, the survey shows. The American Petroleum Institute will release separate inventory data today.

Mirae Outlook

New York oil futures will average $95 a barrel next year asU.S. President Barack Obama approves the Keystone XL pipeline toimport Canadian supply, Mirae Asset Securities said today.

Brent will average $115, up from $111 this year, as globaldemand rises 0.9 percent annually to more than 90.5 millionbarrels a day, Gordon Kwan, the Seoul-based broker’s head ofenergy research in Hong Kong, said in an e-mailed report. Heforecasts China and the Middle East driving almost two-thirds ofrising demand.