Oct. 12 (Bloomberg) -- Crude oil rose to a six-week high in New York as advancing European equities and U.S. index futures reinforced confidence in the global economic recovery. Oil increased for a third day as European stocks advanced, following the surge of U.S. equity markets on Oct. 9 to their highest close this year. The dollar weakened against the euro and attracted investors to raw-material futures as a hedge against inflation. “The strength we are seeing here is a reaction to the continuing weakness in the dollar and increasing hopefulness about the economy,” said John Kilduff, senior vice president of energy at MF Global in New York. “Positive earnings surprises and equity strength are making people optimistic.” Crude oil for November delivery climbed $1.54, or 2.2 percent, to $73.31 a barrel at 9:01 a.m. on the New York Mercantile Exchange. Futures reached $73.65, the highest since Aug. 25. Prices are up 64 percent this year. Royal Philips Electronics NV, Europe’s largest consumer- electronics maker, posted an unexpected third-quarter profit. The results came after Alcoa Inc., the largest American aluminum producer, started earnings season in the U.S. last week with income that beat analysts’ estimates. “The continued strength of equities when many people had been expecting a relapse is behind oil’s surge through $70,” said Christopher Bellew, senior broker at Bache Commodities Ltd. “Demand does seem to be on the mend, particularly in Asia.” Demand Outlook Oil advanced last week as the International Energy Agency raised its 2010 demand forecast for a third month, citing higher-than-expected consumption in Asia and the Americas. The IEA, which advises 28 nations on energy policy, also increased its estimate for consumption this year in the Oct. 9 report. Hedge-fund managers and other large speculators boosted their net-long position in Nymex oil futures in the week ended Oct. 6, according to the U.S. Commodity Futures Trading Commission. Speculative long positions, or bets prices will rise, outnumbered short positions by 50,006 contracts, the commission said in its Commitments of Traders report. Brent crude oil for November settlement increased $1.40, or 2 percent, to $71.40 a barrel on the London-based ICE Futures Europe exchange. Futures touched $71.73, the highest level since Sept. 18. To contact the reporters on this story: Mark Shenk in New York at mshenk1@bloomberg.net

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