Oil Trades Near 31-Month High, Heads for Eighth Monthly Advance

Oil traded near a 31-month high in New York, heading for an unprecedented eighth monthly gain amid signs of increasing U.S. demand.

Futures rose as much as 0.5 percent, reversing an earlier decline, after U.S. data showed stronger than forecast growth in consumer spending. The euro gained against the dollar after a report showed inflation in the euro zone accelerated to the fastest pace in 2 1/2 years, fanning speculation the European Central Bank may raise interest rates again.