Oil gained a second day as signs of improvement in the U.S. and German economies boosted speculation demand may rise and Iranadvised Saudi Arabia to be ``wise'' in its approach to supplying more crude if sanctions are placed on Iranian supplies.

Futures rose as much as 0.6 percent after climbing 2 percent yesterday. A U.S. Federal Reserve report showed manufacturing in the New York region expanded at the fastest pace in nine months, while German investor confidence jumped the most on record. Iran’s Foreign Minister called on Saudi Arabia to be “wise and responsible in their approach” after the kingdom said it could make up any loss of output. Citigroup Inc. raised its forecast for Brent to $110 a barrel this year.

Crude for February delivery increased as much as 57 cents to $101.24 a barrel in electronic trading on the New York Mercantile Exchange. It was at $101.27 at 10:58 a.m. Sydney time. The contract yesterday advanced $2.01 to $100.71, the highest since Jan. 11. Floor trading was closed Jan. 16 for the Martin Luther King Jr. holiday and electronic trades were booked with yesterday’s for settlement purposes.

Brent oil for March settlement gained 19 cents to $111.53 a barrel on the London-based ICE Futures Europe exchange yesterday. The European benchmark contract’s premium to West Texas Intermediate futures closed at $10.66, compared with a record $27.88 on Oct. 14.

An Energy Department report tomorrow will probably show that U.S. crude stockpiles rose 3 million barrels last week, according to the median of 9 analyst estimates in a Bloomberg News survey. The increase will be a fourth week of gains.

Enterprise Start

Enterprise Products Partners LP (EPD) plans to start shipping oil on the Seaway pipeline from Cushing, Oklahoma, to the U.S. Gulf Coast June 1 after the line is reversed.

“We are saying June 1 for the initial reversal, and that’s for 150,000 barrels a day,” Enterprise Chief Executive Officer Michael Creel said yesterday in an interview at the company’s Houston headquarters. “And then, end of the year as much as 450,000 barrels a day.”

Enterprise and Enbridge Inc. announced Nov. 16 that the 30- inch line would be reversed and begin operation by the second quarter. Seaway’s start is expected to help relieve a bottleneck at the Cushing pipeline hub that is the delivery point for West Texas Intermediate futures traded inNew York.

To contact the reporter on this story: Ben Sharples in Melbourne at bsharples@bloomberg.net

To contact the editor responsible for this story: Alexander Kwiatkowski in Singapore atakwiatkowsk2@bloomberg.net

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