Futures rose as much as 1.5 percent as traders bet subfreezing temperatures and forecasts of snow throughout Europe will boost consumption of motor and heating fuel. Oil trimmed gains as the euro declined after European governments and the International Monetary Fund extended an aid package to Ireland.

“We’re having the coldest November in 25 or 30 years, so people are burning more oil,” said Christopher Bellew, senior broker at Bache Commodities Ltd. in London.

Oil for January delivery climbed as much as $1.27 to $85.03 a barrel in electronic trading on the New York Mercantile Exchange, the highest intraday price since Nov. 15. It was at $84.66 at 1:49 p.m. London time. Brent crude for January settlement rose as much as $1.14, or 1.3 percent, to $86.72 a barrel on the ICE Futures Europe exchange in London.

Temperatures in Paris will be as low as minus 5 degrees Celsius (23 degrees Fahrenheit) tomorrow, compared with an average minimum of plus 4 for this time of year, according to CustomWeather Inc. data on Bloomberg. London temperatures may decline to minus 6 on Dec. 3, according to CustomWeather.

EU Bailout

The EU handed an 85 billion-euro ($113 billion) bailout to Ireland and told Greece it could have an extra four-and-a-half years to repay emergency loans to match the seven-year term under Ireland’s deal. The euro fell as low as $1.3136, the weakest rate against the dollar since Sept. 21.

“When you have sovereign risk concerns mounting on euro- zone member countries, the euro comes under pressure relative to the dollar,” said Harry Tchilinguirian, head of commodity markets strategy at BNP Paribas SA. “As oil trades inversely with the dollar, a potential for the euro to regain some ground relative to the dollar will be positive for oil prices.”

Traders are increasing bets that oil will reach $100 next year on signs of falling inventories and a reduction in spare output capacity.

The price of options to buy December 2011 futures at $100 a barrel jumped 14 percent on Nov. 24, the largest one-day gain in three months, according to data compiled by Bloomberg. So-called open interest for the contract has risen 51 percent this year to 45,424 lots, the highest for any crude option on the New York Mercantile Exchange.

The increase in trading of $100 options shows some investors anticipate oil will rise at least 19 percent to levels last reached in 2008.

Source: Bloomberg