By Ann Koh Sept. 11 (Bloomberg) -- Crude oil rose for a fifth day as the dollar fell toward a nine-month low and industrial production in China, the world’s second-biggest energy user, grew at a faster pace than forecast. Oil is poised for its first weekly gain in three after the dollar reached its lowest level since Dec. 18 against the euro as China’s factory output gained and new loans exceeded analyst expectations, reducing demand for the U.S. currency as a refuge. “The expectation is that China is on a strong growth path,” said David Moore, a commodity strategist at Commonwealth Bank of Australia Ltd. in Sydney. “Also supportive of oil prices was the fact that the U.S. dollar has remained fairly soft.” Crude oil for October delivery rose as much as 44 cents, or 0.6 percent, to $72.38 a barrel on the New York Mercantile Exchange. It was at $72.30 a barrel at 12:48 p.m. Singapore time. Prices have gained 6.3 percent this week and climbed 62 percent this year. Output at China’s factories grew 12.3 percent from a year earlier, the statistics bureau said in Beijing today. That exceeded the 11.8 percent growth expected by economists surveyed by Bloomberg News. The dollar traded at $1.4619 per euro as of 12:40 p.m. in Tokyo from $1.4582 yesterday in New York, when it dropped to $1.4613. The euro has gained 4.6 percent against the dollar so far this year. Oil Survey China’s power generation rose to a record in August after the domestic economic recovery spurred demand from businesses and factories. Output increased for a third month, climbing 9.3 percent, the statistics bureau said today. Prices of crude futures may fall next week as fuel stockpiles increase and refineries prepare to idle units for seasonal maintenance, a Bloomberg survey showed. Fourteen of 31 analysts surveyed, or 45 percent, predicted that oil will fall through Sept. 18. Ten respondents, or 32 percent, forecast that the market will rise and seven said prices will be little changed. Last week, 50 percent of analysts said oil would fall. U.S. stockpiles of crude oil fell 5.91 million barrels to 337.5 million last week, the Energy Department’s report showed yesterday. Supplies were estimated to decline by 1.85 million barrels, according to the median of 16 responses from analysts in a Bloomberg News survey. U.S. Stockpiles Gasoline inventories rose 2.07 million barrels to 207.2 million last week, the first gain in seven weeks, the department said. Supplies were forecast to drop by 1.5 million barrels, according to a Bloomberg News survey. Demand for the fuel fell 2.1 percent to an average 9.28 million barrels a day. Stockpiles of distillate fuel, a category that includes heating oil and diesel, climbed 1.99 million barrels to 165.6 million, the highest since January 1983. Oil rose yesterday after the International Energy Agency increased its 2010 estimate for global demand for a second consecutive month. World oil demand is likely to average 85.7 million barrels a day next year, according to a monthly report from the Paris-based agency yesterday. That’s 450,000 barrels a day more than estimated in August. The change in the forecast “is quite substantial,” Ian Fyfe, the head of the IEA’s oil industry and markets division, said in an interview yesterday. “It is premised on stronger North American and Chinese demand.” Brent crude oil for October settlement climbed as much as 59 cents, or 0.8 percent, to $70.45 a barrel on the London-based ICE Futures Europe exchange, and traded at $70.39 at 12:49 p.m. Singapore time. Yesterday, it increased 3 cents to close at $69.86 a barrel.

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