Oil advances in last hour of trading, reversing decline

LONDON. April 29. KAZINFORM Oil rose to the highest level in more than three weeks in New York as the biggest gain in U.S. consumer spending in more than a year and better-than-projected earnings overshadowed lower-than-forecast economic growth.

Futures climbed 0.4 percent after the Commerce Department said household purchases increased 2.9 percent, exceeding the most optimistic projection by economists surveyed by Bloomberg. Gross domestic product grew at a 2.2 percent annual rate, missing the 2.5 percent projection. Equities increased after Amazon.com Inc. posted earnings per share that quadrupled, Bloomberg reported.

"The market has shrugged off some of the negative news and is closing higher," said Jason Schenker, president of Prestige Economics LLC, an Austin, Texas-based energy consultant. "The government data is being interpreted as modestly positive and corporate profits have been healthy."

Crude oil for June delivery climbed 38 cents to $104.93 a barrel on the New York Mercantile Exchange , the highest settlement since April 2. Futures gained 1.8 percent this week and have increased 6.2 percent this year.

Brent oil for June settlement slipped 9 cents to end the session at $119.83 a barrel on the London-based ICE Futures Europe exchange.

The rise in U.S. household consumption followed a 2.1 percent gain in the prior quarter and exceeded the 2.3 percent median forecast in the Bloomberg survey. Purchases added 2 percentage points to growth.

GDP expansion slowed from a 3 percent pace in the fourth quarter. Corporate spending on equipment and software climbed at a 1.7 percent pace, the weakest level in almost three years, after advancing at a 7.5 percent rate in the previous quarter.

for full version http://www.bloomberg.com/news/2012-04-27/oil-fluctuates-as-u-s-economy-expands-spending-gains.html