NEW YORK, Nov 1: Oil rose on Friday as swift US economic growth encouraged a rebound from five straight losing sessions that had pushed prices to their lowest level in a month.

Light sweet crude futures in the United States settled up 64 cents at $29.11 per barrel, while London Brent crude futures settled up 60 cents to $27.70 a barrel, bouncing off Thursday’s 1-month low of $26.75.

Oil has dropped more than 10 per cent in the past 3 weeks as strong imports to the United States, the world’s largest energy consumer, replenish tight stocks and reassure traders there should be enough heating fuel this winter.

Growing signs of a US economic recovery and strong Asian demand, particularly from booming China, have brightened the outlook for oil demand growth. The US economy grew at more than seven per cent in the third quarter, its fastest period of growth since 1984, the US government said this week.

In addition, a 900,000 barrels-per-day, or 3 per cent, production cut the Organization of Petroleum Exporting Countries agreed last month officially begins on Saturday.

We see price downside as limited from a fundamental point of view and the technical picture is looking more positive again as well, said Kevin Norrish of Barclays Capital.

Nevertheless, the support that crude has recently gained from stronger product markets appears to fading.

US crude oil inventories have jumped about 11 million barrels, or nearly 4.0 per cent, since late September due to a flood of imports averaging nearly 10 million barrels per day, according to the US government. Crude stocks are about 2.0 per cent higher than last year.

The tide of imports has helped refiners boost distillate inventories, including crucial heating oil stocks, into a normal range ahead of winter — 2.6 million barrels above the 5-year average for this time of year.

The US government said this week current oil inventories would help avoid major price spikes in the US this winter if the weather turned colder.

The stock builds spurred liquidation on Thursday from long speculative hedge funds, who had bet on higher prices after Opec announced it would cut output 3.5 per cent from Nov. 1.

The group that controls half the world’s crude exports fears supplies will swell as Iraq’s post-war production recovers and Russia leads a surge in rival output.—Reuters