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By Bloomberg

Slumping oil prices damped demand for Russia’s ruble and increased the appeal of bonds. European stocks rebounded with Greek shares on prospects for a compromise between the country’s government and its creditors.

West Texas Intermediate crude slid 3.5 percent to $50.31 a barrel at 7:03 a.m. in New York. The Stoxx Europe 600 Index advanced 0.2 percent while Greece’s ASE index gained 1.3 percent and the nation’s bonds rose after the government submitted a request to extend the availability of bailout funds for six months. Standard & Poor’s 500 Index futures lost less than 0.1 percent. Treasuries gained with U.K. gilts and German bunds. The ruble fell for the first time in five days.

U.S. crude stockpiles probably rose for a sixth week to the highest in at least three decades, analysts in a Bloomberg survey said before an Energy Information Administration report. While oil has rebounded from a six-year low in January, some options traders are betting the gains won’t last. Greece’s request for an extension of its rescue-loan facility may pave the way for a “reasonable compromise” with its euro- region creditors, European Commission Spokesman Margaritis Schinas said.

“The market is signaling an oversupply of crude that can only lead to lower prices,” Christopher Bellew, senior broker at Jefferies International Ltd. in London, said by e-mail. “Lower oil prices translate into winners and losers, and energy suppliers tend to be losers.”

Stocks and S&P 500 futures were little changed after gains this year boosted the value of global equities to a record $67 trillion, while lower oil prices spurred deflation in countries from France to Finland. Treasuries extended their advance from Wednesday, when Federal Reserve officials signaled an inclination to keep rates on hold “for a longer time” in minutes of their January meeting.

Asset Bubbles

The unprecedented era of monetary stimulus is inflating asset prices across markets to extreme levels, and it’s difficult to predict how it will end faced with deflation, Thomas von Koch, managing partner in Stockholm at EQT Partners, the biggest buyout fund in the Nordic region.

WTI crude lost as much as $2.41 to $49.73 a barrel. Brent slid as much as 3.4 percent to $58.46 a barrel in London, before trading 1.7 percent lower.

U.S. crude supplies probably rose by 3 million barrels to 420.9 million through Feb. 13, according to a Bloomberg News survey before a report from the EIA. While oil explorers idled rigs for 10 straight weeks in response to falling prices, U.S. production continued to rise to a 30-year high of 9.23 million barrels a day in the week to Feb. 6, according to the EIA.

Options Traders

A more than 10 percent rebound in WTI from late January has spurred investors to buy options that protect against a drop in prices. Contracts giving the owner the right to sell U.S. crude futures are the most expensive relative to those offering the right to buy since at least 2010, according to data compiled by Bloomberg.

A gauge of energy companies declined the most among 19 industry groups in the Stoxx 600, dropping 1.7 percent, the biggest drop this month. Total SA slid 2.5 percent and BG Group Plc lost 2.3 percent.

Centrica Plc sank 8.7 percent after the biggest supplier of energy to U.K. households reported a 2014 loss and said it will cut its dividend.

Air France-KLM Group lost 4.7 percent afer reporting that earnings fell last year as pilots had their longest strike in the airline’s history and overcapacity on routes to Asia and Africa damped ticket prices. BAE Systems Plc dropped 1.2 percent after Europe’s largest defense company said full-year profit declined.

Beating Estimates

Cap Gemini SA jumped 5.7 percent as 2014 net income beat analysts’ estimates. Rexam Plc rallied 3.9 percent as Ball Corp. offered to buy its rival beverage-can maker for about 4.4 billion pounds ($6.8 billion) in cash and shares. The London- based company also reported 2014 pretax profit that beat analysts’ projections.

Greek stocks rebounded and the 10-year yield slipped 16 basis points to 9.84 percent. It reached 44.21 percent in 2012. Euro-area finance ministry officials are scheduled to assess the letter later today. If they see room for an agreement, the currency bloc’s finance ministers will convene on Friday.

Credit-default swaps insuring $10 million of Greek government debt for five years were little changed at $4.3 million upfront and $100,000 annually, signaling a 72 percent probability of default, according to CMA.

S&P 500 futures were little changed after the index closed near a record. Japan’s Nikkei 225 Stock Average rallied to its highest level since May 2000, while the Topix index closed at a seven-year high.

Russian Stocks

Russia’s dollar-denominated RTS index slid 2.1 percent, after closing at the highest level since Dec. 3. The ruble weakened 0.6 percent .

Ukraine’s hryvnia slid 0.6 percent, and the government’s $2.6 billion 9.25 percent bonds due July 2017 fell for a fifth day to a record low of 46.90 cents on the dollar, sending the yield to 49 percent.

Leaders of France, Germany, Russia and Ukraine agreed that the truce accord reached in Minsk must be implemented even after fighting forced the government in Kiev to abandon a strategic crossroad town in the east. Pro-Russian separatists continued shelling Ukrainian forces near the Sea of Azov port city of Mariupol, military spokesman Anatoliy Stelmakh said Thursday.

The Treasury 10-year note yield fell two basis points to 2.06 percent, after dropping six basis points on Wednesday. U.K. 10-year yields declined three basis points to 1.82 percent and the rate on similar-maturity German bunds slipped two basis points to 0.36 percent.

Gold extended a rebound from the lowest level in six weeks. Bullion for immediate delivery climbed 0.4 percent to $1,216.98 an ounce. Silver rose 0.8 percent.

Australia’s currency weakened after the Wall Street Journal reported S&P as saying the country’s AAA rating could face risks in the event of a global economic shock. The Aussie fell 0.5 percent to 77.77 U.S. cents.