Oil fluctuated

Oil fluctuated as U.S. President Barack Obama and Israeli Prime Minister Benjamin Netanyahu met to discuss how to confront Iran over its nuclear program and as China cut its economic growth target.

Futures advanced as much as 0.7 percent in New York a day after Obama said that he takes “no options off the table” including a “military effort” to stop Iran from having a nuclear weapon. The U.S. won’t hesitate to use military force against Iran if necessary, Obama told a conference of the American Israel Public Affairs Committee yesterday. There’s still time for diplomacy and sanctions to work, he said.

Prices fell as much as 1.1 percent earlier as China’s Premier Wen Jiabao his country will aim for economic growth of 7.5 percent this year, the lowest goal since 2004.

China is the second-biggest oil-consuming country after the U.S. The two nations were responsible for 32 percent of global oil consumption in 2010, according to BP Plc (BP/)’s Statistical Review of World Energy released on June 8. The 17 countries using the euro accounted for about 12 percent of world demand last year, BP figures show.

Oil rose earlier after a fatal vehicle collision and fire at a pumping station this weekend prompted Enbridge Inc. (ENB) to close the pipeline near Chicago.

Crude oil for April delivery rose 28 cents, or 0.3 percent, to $106.98 a barrel at 11:53 a.m. on the New York Mercantile Exchange. Prices are up 2.5 percent in the past year.

Brent oil for April settlement increased 76 cents, or 0.6 percent, to $124.41 a barrel on the London-based ICE Futures Europe exchange in London. The European benchmark’s premium to West Texas Intermediate widened to $17.43 a barrel from last week’s close of $16.95.