Oil hits five-week high on China news

NEW YORK - Crude oil rose to a five-week high on speculation China will broaden efforts to boost economic growth, bolstering fuel demand in the world's third-largest economy.

Oil climbed 9 percent after an official said Chinese Premier Wen Jiabao may disclose measures to spur expansion, adding to a $585 billion spending plan. A government report yesterday showed an unexpected decline in US crude oil inventories last week as OPEC cut production.

Crude oil for April delivery rose $3.73 to $45.38 a barrel on the New York Mercantile Exchange, the highest settlement since Jan. 26.

Wen will reveal "a new stimulus package" in his annual address to the nation's legislature today, former statistics bureau head Li Deshui said in Beijing yesterday. He gave no indication whether spending would increase.

Commodities had their biggest increase since Dec. 31. The Reuters/Jefferies CRB index of 19 raw materials rose 7.78 to 211.45.

The average US pump price for regular gasoline was unchanged at $1.933 a gallon Tuesday, AAA, the nation's largest motorist organization, said on its website.