Oil headed for a weekly gain in New York on speculation that the global economic recovery will sustain demand for fuel.
Crude rose as much as 0.8 percent after Group of Eight leaders said the world economy is gaining strength and as a weakening dollar boosted the appeal of commodities. Futures narrowed their gains after a report showed European confidence in the economy weakened for a third straight month in May. The Organization of Petroleum Exporting Countries may raise output quotas to meet global demand, according to JPMorgan Chase & Co.
High commodity prices are starting to take their toll on growth, Oil demand data is weak, in particular for gasoline demand.
Crude for July delivery was at $100.48 a barrel, up 25 cents, at 12:35 p.m. London time, after rising as much as 80 cents to $101.03. Futures yesterday fell $1.09 to $100.23, the lowest settlement since May 24. Prices are up 1 percent this week and 10 percent this year.
Brent oil for July settlement was up 8 cents at $115.13 a barrel on the London-based ICE Futures Europe exchange. The contract yesterday rose 12 cents, or 0.1 percent, to $115.05, the highest closing price since May 10.