Oil advanced on optimism that Europe’s debt crisis is easing and speculation that the Federal Reserve will announce measures to boost the U.S. economy.

Prices rose as much as 1.4 percent as Spanish bond yields declined after the government met its target at a bill auction and European creditors prepared to ease Greece’s bailout terms.

Spain sold 3.04 billion euros ($3.8 billion) of bills, exceeding a target of 3 billion, according to the Madrid-based Bank of Spain. Demand for Spain’s 12-month bills was 2.16 times the amount offered, compared with 1.84 last month. The bid-to- cover ratio on the 18-month securities rose to 4.42 from 3.23.

Oil for July delivery, which expires tomorrow, rose 90 cents, or 1.1 percent, to $84.17 a barrel at 11:06 a.m. on the New York Mercantile Exchange. The more actively traded August contract rose 91 cents, or 1.1 percent, to $84.51.

Brent oil for August settlement gained 19 cents to $96.24 a barrel on the London-based ICE Futures Europe exchange. Earlier it fell to $94.44, the lowest level since January 2011.