Oil rises on possible Japanese stimulus

KOLKATA: Crude rose for the first time in three days on Wednesday, buoyed by speculation that Japan may pursue more aggressive monetary easing, potentially buoying fuel demand. Futures gained as much as 0.7% as the Standard & Poor's GSCI Index of commodities advanced for the first time in three days.

Japan's Prime Minister Yoshihiko Noda said he is willing to dissolve parliament on November 16, pushing the yen lower as investors speculated that the central bank would add stimulus to revive the economy. Crude for December delivery climbed to a high of $86 a barrel and was at $85.53 a barrel, up 15 cents, in electronic trading on the New York Mercantile Exchange at 7:07 am local time.