China, the world's second-largest oil consumer, said yesterday it will spend the money through 2010 on housing and infrastructure, boosting demand for iron ore, crude oil and copper. Oil also gained after Saudi Aramco, the world's biggest state oil company, told South Korean and Japanese refiners it would cut December supplies.
Crude oil for December delivery climbed as much as $3.37, or 5.5 percent, to $64.41 a barrel in electronic trading on the New York Mercantile Exchange. It was at $64.20 at 11:04 a.m. London time.
Prices fell 10 percent last week as equities dropped, U.S. fuel stockpiles rose more than expected and the nation's unemployment rate climbed to a 14-year high.
China's economy grew 9 percent in the third quarter at the slowest pace in five years and export orders dropped to the lowest level since 2005.
Brazil, Russia, India and China, the so-called BRIC nations, plan coordinated measures to increase trade and capital flows among their economies, Russian Finance Minister Alexei Kudrin said in an interview yesterday.
Russia, the world's second-biggest oil producer, will also defy calls from Venezuelan President Hugo Chavez to join the Organization of Petroleum Exporting Countries in cutting output, Kudrin said.
Copper for delivery in three months gained $340, or 9.1 percent, to $4,095 a metric ton on the London Metal Exchange as of 11:31 a.m. local time, reversing last week's decline.
Bullion for immediate delivery advanced as much as $18.40, or 2.5 percent, to $755.05 an ounce and traded at $753.56 at 11:21 a.m. London time.
Corn for December delivery gained as much as 14.5 cents, or 3.9 percent, to $3.90 a bushel in electronic trading in Chicago and was at $385.75 a bushel at 11:15 a.m. London time.
Brent crude oil for December settlement gained as much as $3.64, or 6.4 percent, to $60.99 a barrel on London's ICE Futures Europe exchange. The contract was at $60.85 at 11:07 a.m. local time.