Crude oil rose to a six-month high above $63 a barrel in New York after a report showing a jump in U.S. consumer confidence spurred optimism the worst of the recession is over in the world’s largest oil-consuming nation.

Oil also increased after Saudi Arabian Oil Minister Ali al- Naimi said there are signs that demand? is recovering and crude stockpiles will decline. U.S. gasoline inventories probably fell for a fifth week as refinery operations lagged behind year-ago levels and as fuel deliveries rose to meet holiday demand, a Bloomberg News survey showed.

“It’s the latest in a string of data which has suggested that a recovery is imminent,” said Toby Hassall, research analyst with Commodity Warrants Australia Pty. in Sydney. “If equities can march higher and the dollar weakens then perhaps oil might be able to build a base around $60 a barrel.”

Crude oil for July delivery rose as much as 60 cents, or 1 percent, to $63.05 a barrel in electronic trading on the New York Mercantile Exchange. That’s the highest since Nov. 13. It was at $62.90 at 8:19 a.m. in London.

“I don’t see anything standing in crude’s way right now,” said Jonathan Kornafel, a director for Asia at options traders Hudson Capital Energy in Singapore. “You’re seeing a bit of risk aversion away from selling the dollar and now it’s just buy crude oil.”

The Conference Board’s sentiment index surged to 54.9, more than forecast and the biggest increase since 2003, the New York- based research group said yesterday.

The Standard &?; Poor’s 500 Index increased 2.6 percent to 910.33 and the Dow Jones Industrial Average climbed 2.4 percent to 8,473.49.

OPEC Meeting

“It is getting to a level now where we are going to need to see demand start to pick up if we are going to see this rally continue up to the mid-$60s,” Hassall said.

OPEC, responsible for 40 percent of global crude supply, is likely to keep output quotas unchanged for a second time this year as recovering oil prices forestall the need for new cuts, according to a Bloomberg survey published on May 22.

The Organization of Petroleum Exporting Countries has “no need” to cut oil production because there are signs of a recovery in demand, Saudi’s al-Naimi told reporters today in Vienna, where the group meets tomorrow.

Saudi Arabia is the biggest and most influential member of OPEC. The producer group is likely to keep daily output quotas unchanged at 24.845 million barrels when it meets tomorrow, according to a Bloomberg News survey of 27 analysts.

Mixed Signals

Comments from other OPEC members May 25 gave mixed indications about the group’s likely course of action. Algerian minister Chakib Khelil said the group will be careful about harming the global economic recovery, while Libyan official Shokri Ghanem said there’s a 50 percent chance of a supply cut.

“If they do keep production at current levels then it should push oil back down, at least below $60,” said Mike Sander, an investment adviser at Sander Capital Advisors Inc. in Seattle.

The 11 OPEC members with quotas, all except Iraq, pumped 25.812 million barrels a day last month, a report from the group on May 13 said, citing secondary sources, which include estimates from analysts and news organizations. That’s up 225,000 barrels a day from March.

U.S. crude oil supplies probably rose 50,000 barrels in the week ended May 22 from 368.5 million the previous week, according to the median of 10 estimates by analysts before an Energy Department report tomorrow.

Fuel Consumption

Total U.S. daily fuel consumption averaged 18.3 million barrels in the four weeks ended May 15, down 7.6 percent from a year earlier, the department said last week.

Crude oil stockpiles held by the 28 nations advised by the International Energy Agency rose to 62 days of demand in the first quarter, according to the agency’s report earlier this month. That is up from 54 days in the year-earlier period and 58 days in the fourth quarter of 2008.

Stockpiles of gasoline probably dropped 1.65 million barrels from 204 million the prior week, according to the median of 10 estimates by analysts. Wholesalers and retailers increase motor fuel deliveries before the summer, when Americans take to the highways for vacations.

Brent crude for July settlement rose as much as 56 cents, or 0.9 percent, to $61.80 a barrel on London’s ICE Futures Europe exchange. It was at $61.60 a barrel at 8:20 p.m. Singapore time. Yesterday it gained $1.03, or 1.7 percent, to end at $61.24 a barrel, the highest settlement since Nov. 5.