Crude oil traded near $87 a barrel in New York after rising on signals that U.S. economic growth will accelerate, bolstering fuel use in the world’s biggest energy-consuming country.

Oil climbed above $87 for the first time since October 2008 yesterday on growth in American jobs and service industries. The U.S. government raised its 2010 oil price estimate on forecasts the global economy will rebound through the end of the year. Most equities rose on speculation the Fed plans to leave its benchmark rate at a record low to safeguard the recovery.

“Oil has moved higher in anticipation that demand is coming back,” said David Greely, senior energy economist at Goldman Sachs Group Inc. in New York. “Positive economic news has helped push prices into the $85-to-$95 range.”

Crude oil for May delivery was at $86.70 a barrel, down 14 cents, in electronic trading on the New York Mercantile Exchange at 8:56 a.m. Sydney time. Yesterday, the contract rose 22 cents, or 0.3 percent, to $86.84. Futures reached $87.09, the highest intraday level since Oct. 9, 2008.

Federal Reserve officials saw signs of a strengthening recovery that could be hobbled by high unemployment and tight credit, and some warned of raising rates too soon, according to minutes of their March meeting.

West Texas Intermediate oil, the U.S. benchmark, will average $80.74 a barrel this year, up from last month’s forecast of $80.06, according to the Energy Department’s monthly Short- Term Energy Outlook, released yesterday. That’s 31 percent higher than the 2009 average price of $61.66.

Crude Supplies

U.S. crude oil inventories rose by 1.07 million barrels last week to 353 million, the industry-funded American Petroleum Institute said yesterday. The government will probably say inventories rose 1.35 million barrels, according to the median of estimates in a Bloomberg News analyst survey before an Energy Department report today.

Gasoline inventories fell 2.96 million barrels to 220.2 million, the API report showed. Supplies of distillate fuel, a category that includes heating oil and diesel, climbed by 723,000 barrels to 148.3 million.

Supplies of gasoline probably dropped 1 million barrels from 224.9 million the prior week, the Bloomberg survey showed. Distillate stockpiles probably fell 1.13 million barrels from 144.6 million the prior week, according to the survey.

The Energy Department is scheduled to release its weekly report at 10:30 a.m. in Washington.

Brent crude oil for May settlement increased 27 cents, or 0.3 percent, to end the session at $86.15 on London’s ICE Futures Europe exchange yesterday