By Ben Sharples and Ann Koh March 3 (Bloomberg) -- Crude oil traded near $80 a barrel after rising on a possible resolution to Greece’s budget problems and as an industry report showed a decline in distillate supplies in the U.S., the world’s biggest energy user. Oil gained 1.3 percent yesterday as equity markets gained on speculation that the European Union will bail out Greece as the nation prepares further plans to cut its deficit. U.S. stockpiles of distillate fuel, a category that includes heating oil and diesel, dropped 4.07 million barrels last week, according to the industry-funded American Petroleum Institute. “U.S. inventories are still high, but not as high as they were in the first half of 2009,” said David Moore, a commodity strategist at Commonwealth Bank of Australia Ltd. in Sydney. “Markets are becoming a little more optimistic about the international economic outlook.” Crude oil for April delivery traded at $79.70 a barrel, up 2 cents, in electronic trading on the New York Mercantile Exchange at 2:50 p.m. Singapore time. Yesterday, the contract rose 98 cents to settle at $79.68. Oil also increased as the dollar weakened for a second day against the euro, increasing demand for commodities as an alternative investment. The dollar traded at $1.3639 per euro at 2:38 p.m. Singapore time, from $1.3615 yesterday. An Energy Department report today may show that stockpiles of distillate fuel declined 1.05 million barrels in the week ended Feb. 26, according to a Bloomberg News Survey. Crude Supplies Crude oil inventories rose 2.67 million barrels last week, the API said late yesterday. The Energy Department data may show that supplies rose 1.28 million barrels. The report is scheduled for release at 10:30 a.m. in Washington. Gasoline inventories rose 909,000 barrels last week, the API said. The Energy Department report may show that supplies increased 300,000 barrels, according to the median of responses. “Usually refiners shut for maintenance before the gasoline demand season,” said Clarence Chu, a trader with options dealers Hudson Capital Energy in Singapore. “That means less demand for crude.” The U.S. driving season, when gasoline demand peaks, lasts from the Memorial Day weekend in late May to the Labor Day holiday in September. Brent crude for April delivery was at $78.02 a barrel, down 16 cents, on the London-based ICE Futures Europe exchange at 2:50 p.m. Singapore time. Yesterday it rose $1.29, or 1.7 percent, to $78.18 a barrel. Crude oil is poised to break out of recent sideways trading pattern and may rise above $83 a barrel, near a 14-month high reached in January, according to National Australia Bank Ltd. To contact the reporter on this story: Ben Sharples in Melbourne at bsharples@bloomberg.net

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