Oil headed for a seventh weekly gain in New York, the longest run of advances in almost four years, on speculation that stronger economic growth will boost demand.

Prices were little changed today as the euro strengthened against the dollar after the European Central Bank said banks will hand back a greater amount of loans than analysts estimated and German business confidence rose for a third month in January. U.S. oil demand increased last week by the most in a month, government data showed yesterday.

Some 278 financial institutions will return 137.2 billion euros ($184.4 billion) on Jan. 30, the first opportunity for early repayment of the initial three-year loan, the Frankfurt- based ECB said in a statement today. That compares with the median forecast of 84 billion euros in a Bloomberg News survey of economists.

The German Ifo institute’s business climate index, based on a survey of 7,000 executives, climbed to 104.2 from 102.4 in December. That’s the highest since June and the third straight gain. Economists predicted an increase to 103, according to a Bloomberg survey.

The euro gained as much as 0.8 percent to $1.3479, the highest level since February. A strengthening euro increases dollar-denominated oil’s appeal as an investment alternative.

Petroleum consumption in the U.S. climbed 3.9 percent in the week ended Jan. 18 to 18.6 million barrels a day, the Energy Information Administration, the Energy Department’s statistical arm, reported yesterday. Gasoline demand grew 1.3 percent to 8.43 million barrels a day.

West Texas Intermediate for March delivery slid to $95.43 a barrel on the New York Mercantile Exchange. Futures are up 0.3 percent this week, heading for the longest rising streak since April 2009.

Brent for March settlement fell 4 cents to $113.24 a barrel on the London-based ICE Futures Europe exchange. The European benchmark contract was at a premium of $17.36 after contracting to $15.16 on Jan. 17, the narrowest in almost six months.

The Brent-WTI spread widened by $1.83 on Jan. 23 after Enterprise Products Partners LP said capacity was limited at the Jones Creek terminal on the Seaway pipeline, cutting shipments from Cushing, Oklahoma, the delivery point for WTI futures, to the Gulf Coast. The delivery point in Katy, Texas, has allowed Seaway to “make up the difference” from the restrictions, the company said today.

Gold futures dropped to a two-week low as Germany’s business confidence rose more than forecast, bolstering the outlook for Europe’s largest economy and eroding the appeal of the precious metal as a haven.

The Ifo institute’s business climate index in January climbed to 104.2, the highest since June. In the U.S., claims for jobless benefits last week fell to a five-year low, the Labor Department said yesterday. Gold has declined this month, while the MSCI All-Country World Index of equities has climbed more than 4 percent.

Gold futures for February delivery declined to $1,655.00 an ounce, the lowest since Jan. 11, on the Comex in New York, heading for the third straight decline. 

Change % Change Last

Oil 95.98 +0.03 +0.03%

Gold $1,667.30 -2.60 -0.16%