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.

Oil fell for a second day on Friday, dropping more than 3 percent towards $64 a barrel and set for its biggest ever monthly loss after weak U.S. economic data refocused attention on falling demand.

Oil rose above $64 a barrel on Wednesday, ending a three-day losing streak, after stock markets rallied on bargain hunting and hopes that Japan and the U.S. Federal Reserve will cut interest rates to spur growth.

Oil erased early losses to rise by one dollar to above $64 on Tuesday, tracking a rebound in Asian stock markets as investors returned to buy beaten-down shares.