Crude oil advanced in New York, heading for its biggest weekly gain since May, as equities rose in Asia and Europe, bolstering optimism that fuel demand may increase.

Oil climbed after a U.S. government report yesterday showed stockpiles dropped 4.96 million barrels last week, the most since September. The Stoxx Europe 600 Index advanced for a fourth day today.

“The U.S. inventory data is positive,” said oil analyst at Barclays Capital in London. “The U.S. is growing strongly once again.”

Crude for August delivery rose as much as 51 cents, or 0.7 percent, to $75.95 a barrel on the New York Mercantile Exchange. It was at $75.72 at 12:01 p.m. London time. Yesterday, the contract gained $1.37, or 1.9 percent, to $75.44, the highest settlement this month. Oil is set for a 5 percent increase this week, the most since the five days ended May 28.

Brent crude for August rose as much as 49 cents, or 0.7 percent, to $75.20 a barrel and was at $75.17 at 12:01 p.m. on the ICE Futures Europe exchange in London. Yesterday, the contract gained $1.20, or 1.6 percent, to $74.71, also the highest settlement this month.

Barclays Capital expects crude oil prices to average $84 a barrel in New York this quarter, bolstered partly by forecasts of record demand this year, Sen said.

Demand Recovery

Worldwide oil use will rise by 1.7 million barrels a day, or 2 percent, in 2010 to a record 86.4 million barrels, the Paris-based International Energy Agency said on June 10.

“The recovery in oil demand has come a lot more quickly than previous expectations,” Sen said.

The global economy will grow 4.6 percent in 2010, the biggest expansion since 2007, the International Monetary Fund said yesterday in revisions to its World Economic Outlook.

“Oil is moving extremely closely with equity markets,” Maziar Amiri, an energy trader at E&T Energie Handelsgesellschaft mbH, said from Vienna. “The fall in inventories was also positive for the market.”

U.S. crude supplies fell to 358.2 million barrels in the week ended July 2, the lowest in 10 weeks, according to the U.S. Energy Department report. Imports slipped and refiners increased operating rates to 89.8 percent of capacity, the highest weekly average since January 2008.

Oil may rise next week after the IMF upgraded its global economic outlook and as U.S. supplies dropped to a two-month low, a Bloomberg News survey showed.

Twenty of 38 analysts and traders, or 53 percent, forecast crude will increase through July 16. Ten respondents, or 26 percent, predicted futures will be little changed and eight saw a decrease. Last week 53 percent of survey respondents forecast a price decline.