June 1 (Bloomberg) -- European stocks advanced, led by energy producers including BP Plc and Total SA as oil reached a three-week high, trading above $52 a barrel. The Dow Jones Stoxx 600 Index climbed to its highest in almost three years.

LVMH Moet Hennessy Louis Vuitton SA rose as the euro neared an eight-month low against the dollar, boosting the value of sales for companies dependent on the U.S.

The Stoxx 600 added 0.7 percent to 269.17 at 1:36 p.m. in London, its highest since June 5, 2002. The Stoxx 50 gained 0.8 percent, with four of every five stocks rising. The Euro Stoxx 50 benchmark for the 12 countries sharing the euro rose 0.6 percent.

``Oil stocks represent an opportunity, as an increase to $55 doesn't seem unlikely,'' said Kilian de Kertanguy, a fund manager at Cholet-Dupont Gestion in Paris, which oversees about $1.5 billion. Even as oil costs rise, ``exporters have been increasing following the dollar's gains,'' he said. Kertanguy's holdings include oil producer Eni SpA and LVMH.

Voestalpine AG climbed as the Austrian steelmaker said yearly profit more than doubled. Suez SA led a gain by utilities after UBS AG analysts recommended investors buy the stock.

Benchmark indexes increased in all 18 Western European markets. Norway's OBX Index rose the most, adding 1.7 percent.

Oil Stocks

The Stoxx 600's group of oil stocks had the biggest increase among 18 industries, advancing 1.3 percent. The group accounts for more than 11 percent of the benchmark.

BP, the world's No. 2 publicly traded oil company, advanced 1.2 percent to 557.5 pence. Total, Europe's biggest oil refiner, gained 0.9 percent to 181.1 euros.

Crude oil for July delivery rose as much as 0.8 percent to $52.48 a barrel in after-hours electronic trading on the New York Mercantile Exchange. Royal Dutch/Shell Group shut two gasoline- making units at a refinery in Texas, heightening concern about auto fuel supply during the U.S. holiday season.

Royal Dutch Petroleum Co., which owns 60 percent of Royal Dutch/Shell, increased 1 percent to 47.77 euros in Amsterdam. Shell Transport & Trading Co., which owns the other 40 percent, climbed 0.8 percent to 481.5 pence in London.

Against the dollar, the euro dropped to $1.2234 at 1:20 p.m. in London, compared with $1.2304 late yesterday in New York, according to electronic foreign-exchange dealing system EBS. An industry report today showed manufacturing in the region contracted more than expected in May.

LVMH, BMW

LVMH, a luxury-goods maker that made 26 percent of its sales in the U.S. last year, added 2.7 percent to 59.55 euros. Bayerische Motoren Werke AG, the world's No. 1 maker of luxury cars, climbed 1.9 percent to 35.86 euros. ASM International NV, Europe's No. 2 maker of equipment to build semiconductors, advanced 2.4 percent to 12.14 euros.

``Companies that have costs in euros and sell in dollars will benefit, like BMW,'' said Carsten Hilck, a fund manager at Union Investment GmbH in Frankfurt, which oversees $6.5 billion.

The euro fell below $1.23 yesterday for the first time since October after French voters on May 29 rejected the European Union constitution. Surveys show Dutch voters will follow suit today.

``The weakening euro may be the biggest support for European stocks these days,'' said Francisco Salvador, head of equities at Venture Finanzas SA in Madrid.

He said stocks including Gamesa Corporacion Tecnologica SA, a Spanish wind-turbine maker that sells to the U.S., may benefit from a stronger dollar. Gamesa added 1.5 percent to 11.16 euros.

Lanxess AG jumped 4.5 percent to 18.13 euros. Germany's fourth-largest chemical maker hired Citigroup Inc. HVB Group, and JPMorgan Chase & Co. for a bond sale in euros to refinance bank debt.

`Portfolio of Positives'

The company said yesterday that first-quarter profit almost tripled. Moody's Investors Service yesterday assigned a Baa3 senior unsecured rating to Lanxess.

``It's a portfolio of positives,'' said Silke Stegemann, a chemicals analyst at Landesbank Rheinland-Pfalz in Mainz, Germany. ``The Moody's rating and the benchmark bond are both good for Lanxess's financing.'' Stegemann said she's reviewing her ``underperform'' rating and her 17 euro share-price estimate.

Voestalpine climbed 4.7 percent to 57.34 euros. Austria's biggest steelmaker said fiscal 2005 profit more than doubled to 323.5 million euros ($398.6 million) as prices rose amid demand from countries such as China and India.

Suez, the world's No. 2 water company, increased 1.8 percent to 22.25 euros. It was raised to ``buy'' from ``neutral'' at UBS, which cited higher earnings before interest, taxes, depreciation and amortization at Electrabel SA, the Belgian power utility that's 50 percent owned by Suez.

Veolia Environnement SA, the world's biggest water company, gained 0.9 percent to 30.93 euros.

Elan, EADS

Elan Corp. climbed 6.6 percent to 6.50 euros. Ireland's biggest drugmaker said it plans to retire more than $240 million of debt due in 2008 within the next few days, helping it to save $16 million in annual interest payments.

T&F Informa Plc advanced 5.9 percent to 431.75 pence. The publisher of Lloyd's List shipping newspaper agreed to buy IIR Holdings Ltd. for $1.4 billion to expand its conference- organizing and training business.

European Aeronautic, Defense and Space Co., which controls plane maker Airbus SAS, declined 1 percent to 23.78 euros. Airbus faces compensation demands from Singapore Airlines Ltd. and Qantas Airways Ltd. because of a six-month delay in delivering its new A380 aircraft.

British Sky Broadcasting Plc lost 2.3 percent to 533 pence. The U.K. pay-television business controlled by Rupert Murdoch was cut to ``underweight'' from ``equal-weight'' at Morgan Stanley, which lowered its share-price forecast 21 percent to 480 pence.

To contact the reporter on this story: Adria Cimino in Paris at acimino1@bloomberg.net.

Last Updated: June 1, 2005 08:38 EDT