Oil rises over $1 to near $69
Oil rose over $1 to near $69 a barrel on Monday, reversing earlier losses of more than $1, as Asian stock markets climbed on signs of improvement in credit markets and the dollar steadied, stiffening investor confidence.
FTSE down on U.S. growth fearsThe euro was barely changed at $1.2749 against the U.S. dollar by early Asian trade, having lost about 9.6 percent in October, the single currency's worst monthly performance since its launch in 1999.
Analysts said traders would now be looking for signs that OPEC kingpin Saudi Arabia was cutting back its crude production, in line with the cartel's agreement last month to reduce output by 1.5 million barrels per day (bpd).
U.S. crude rose $1.12 to $68.93 a barrel by 4:23 a.m. British time, after falling as much as $1.13. London Brent crude was up $1.07 at $66.39.
"We're now seeing a more positive tide in stock markets, which is a good indication for crude oil markets and that's helping to stop the downward momentum in oil prices," said Toby Hassall, chief analyst at Commodities Warrants Australia.
"But the dominating theme continues to be a weak demand outlook, and despite the short-term price gains, we're not likely to see any real improvement to outlook in the near term."
Asian stocks rose on Monday, after Wall Street ended a turbulent October on a solid note.
Hong Kong's Hang Seng Index .HSI was up 5.4 percent, Singapore's Straits Times .FTSTI rose more than 4.0 percent, Australia's S&P/ASX 200 Index gained 3.0 percent, while South Korea's shares rose 2.2 percent. Japanese markets were closed for a holiday.
The dollar steadied after recording its biggest monthly gain in more than 17 years in October, with investors bracing for another round of interest rate cuts this week by the world's major central banks.
The European Central Bank, the Bank of England and the Reserve Bank of Australia are all set to lower rates to support their struggling economies against the threat of recession.
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