Oil prices reach all-time high in New York in 2009

Oil advanced for a seventh day after the Department of Energy reported U.S. inventories of the motor fuel tumbled 5.23 million barrels last week, almost five times the decline forecast by analysts and the biggest drop in a year.

The dollar continued its descent against the euro, bolstering the investment appeal of commodities.

Crude oil for November delivery climbed as much as 59 cents, or 0.8 percent, to $78.17 barrel in electronic trading on the New York Mercantile Exchange. That’s the highest intraday price since Oct. 15, 2008. The contract was at $78.03 a barrel at 12:23 p.m. Singapore time.

Futures are poised to gain 8.7 percent this week, the biggest increase since the week ended Aug. 21, amid signs of a recovery in global energy demand. U.S. gasoline inventories fell to 209.2 million barrels in the week to Oct. 9, a four-week low, the Energy Department said yesterday. Distillate fuel stockpiles also dropped more than forecast.

Brent crude oil for December settlement rose as much as 54 cents, or 0.7 percent, to $76.77 a barrel on the London-based ICE Futures Europe exchange. The contract was at $76.53 a barrel at 12:19 p.m. in Singapore. The November contract expired yesterday at $74.45 a barrel.