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Oil Rises on U.S. Economic Growth, Hopes for Europe Rescue Plan

Oil climbed in New York, paring its biggest quarterly drop since 2008, after the U.S. economy grew faster than estimated and on speculation Europe’s bail-out fund will support economic growth.

Futures advanced as much as 1.9 percent, extending gains after the Commerce Department said the world’s largest economy expanded by 1.3 percent in the second quarter, compared with a previous estimate of 1.1 percent. Germany’s lower house of parliament today agreed to the extension of the European Financial Stability Facility endorsed by Chancellor Angela Merkel. The country’s upper house will vote on it tomorrow. Still, a Bloomberg poll indicates investors see the euro area heading toward recession.