Oil climbed after reports pointed to accelerating global growth and as the spread between West Texas Intermediate crude in the U.S. and London’s Brent narrowed on speculation the Seaway pipeline will soon resume full shipments.

Futures rose as much as 1.3 percent as U.S. jobless benefit claims fell to a five-year low. WTI’s discount to Brent widened yesterday after Enterprise Products Partners LP said capacity was limited on Seaway, cutting shipments from the central U.S. to the Gulf Coast. An Energy Information Administration report showed crude supplies rose last week.

Applications for unemployment insurance payments decreased by 5,000 to 330,000 in the week ended Jan. 19, the fewest since the same week in 2008, the Labor Department reported today in Washington. Economists forecast 355,000 claims.

The index of U.S. leading indicators rose in December by the most in three months, showing the economy is poised to keep growing through the first half of this year. The Conference Board’s gauge of the outlook for the next three to six months increased 0.5 percent after the November reading was revised to unchanged from a previously reported decline, the New York-based group said today.

China’s manufacturing is expanding, according to a private survey of companies, bolstering prospects that economic growth will accelerate for a second straight quarter. The preliminary reading of a Purchasing Managers’ Index was 51.9 in January, according to a statement from HSBC Holdings Plc and Markit Economics today. That compares with the 51.5 final reading for December and the 51.7 median estimate in a survey.

Nationwide crude stockpiles rose 2.81 million barrels to 363.1 million in the week ended Jan. 18, according to the EIA. A 2.15 million-barrel gain was projected, according to the median of 10 responses in a survey of analysts.

Gasoline inventories declined 1.74 million barrels to 233.3 million, versus an expected gain of 1.25 million. Stockpiles of distillate fuel, a category that includes heating oil and diesel, increased 508,000 barrels to 132.9 million, versus a forecast of no change.

Refineries operated at 83.6 percent of capacity last week, the lowest level since March, the report from the Energy Department’s statistical arm showed.

Crude oil for March delivery gained to $96.68 a barrel on the New York Mercantile Exchange.

Brent oil for March settlement increased 72 cents, or 0.6 percent, to $113.52 a barrel on the London-based ICE Futures Europe exchange. Volume was 30 percent above the 100-day average.

Gold cheaper amid growing confidence in the global economic recovery, which reduces the attractiveness of low-risk assets.

China's manufacturing sector growth accelerated to a two-year high in January, showed preliminary purchasing managers' index (PMI), which is calculated by the order of the bank HSBC.

In the eurozone, the fall in business activity in January slowed by Germany. Record company Markit, brought hope that the economy of the region began in 2013 on a stronger position. According to the data, a preliminary purchasing managers' index (PMI) Eurozone in January rose to 48.2, indicating a slowdown in the rate of decline compared to December, when the index was 47.2.

The preliminary purchasing managers' index (PMI) for the manufacturing U.S. in January rose to 56.1 from the final value of 54.0 in December. The January index was the highest since March 2011. In Markit reported that the PMI index suggests that "growth in the U.S. manufacturing sector has received an even bigger boost in early 2013."

Market participants are waiting for the outcome of the meeting of the Federal Reserve, which will be held next week.

Demand in the physical market in China on the eve of the New Year is not as high as in previous years.

Stocks of the world's largest exchange-traded fund backed by gold ETF SPDR Gold Trust YTD decreased by 16.7 tons.

February futures price of gold on COMEX today fell to 1664.20 dollars per ounce.

Change % Change Last

Oil 95.56 +0.33 +0.35%

Gold 1,685.20 -1.50 -0.09%