West Texas Intermediate crude rose to a two-month high on a report showing that fewer Americans than projected filed applications for unemployment benefits.

Futures climbed as much as 0.4 percent. U.S. jobless claims fell by 42,000 to 338,000 last week, Labor Department data show. The median forecast of 42 economists surveyed by Bloomberg called for a drop to 345,000. A government report tomorrow will probably show U.S. crude supplies slipped 2.3 million barrels last week, according to a Bloomberg survey. Markets in London and New York were closed yesterday for Christmas.

WTI for February delivery rose 24 cents to $99.46 a barrel at 11:09 a.m. on the New York Mercantile Exchange. The contract touched $99.65, the highest price since Oct. 22. The volume of all futures traded was 83 percent below the 100-day average. Prices have advanced 8.3 percent in 2013, set for the fourth annual gain in five years.

Brent for February settlement fell 1 cent to $111.89 a barrel on the London-based ICE Futures Europe exchange. The volume of all futures traded was 85 percent lower than the 100-day average. The European benchmark grade traded at a $12.43 premium to WTI, down from $12.83 on Dec. 24.