Oil rose above $93 a barrel on speculation a decision by central banks to provide cash to financial institutions will spur economic growth, and after a government report showed a drop in U.S. inventories.

The Federal Reserve, European Central Bank and three other central banks moved to end a credit squeeze that’s threatened to slow the global economy and reduce energy consumption. U.S. crude-oil supplies fell as fuel use increased last week, an Energy Department report showed.

“The energy markets have been interconnected with the global capital markets for some time now,” said John Kilduff, vice president of risk management at MF Global Ltd. in New York. “The renewed outlook for energy demand has us back in rally mode; $100 is squarely back on the table and within reach before year end.”

Crude oil for January delivery rose $3.78, or 4.2 percent, to $93.80 a barrel at 1:41 p.m. on the New York Mercantile Exchange. Prices rose as high as $93.84, the highest since Nov. 29. Futures touched a record $99.29 on Nov. 21. Prices are heading for the biggest two-day gain since January.

Brent oil for January settlement rose $3.35, or 3.7 percent, to $93.34 a barrel on London’s ICE Futures Europe exchange. Futures touched $93.45, the highest since Nov. 27. [MORE]