Oil Rises a Second Day on Signs of Slower U.S. Supply Growth

Oil rose for a second day on speculation that a government report today may show a smaller increase in crude inventories than previously forecast.

U.S. crude stockpiles fell 7.31 million barrels last week, the industry-funded American Petroleum Institute reported yesterday, which may lead traders to revise expectations for U.S. Energy Department data due today. A Bloomberg survey earlier this week forecast that the government report will show that crude supplies climbed by 1 million barrels. Oil extended earlier gains after a U.S. Labor Department report showed initial jobless claims declined more than forecast last week.