Oil gained for the first time in four days after the 15 nations using the euro agreed to shore up their banks, and Richard W. Fisher, president of the Dallas Fed bank, said the U.S. Federal Reserve will do everything necessary to stabilize financial markets.
Crude oil for November delivery rose as much as $3.37, or 4.3 percent, to $81.07 a barrel in electronic trading on the New York Mercantile Exchange. It traded at $79.80 a barrel at 1:29 p.m. in Singapore.
The contract fell $8.89, or 10 percent, to $77.70 a barrel on Oct. 10, the lowest settlement since Sept. 10, 2007. Prices rallied post-settlement as U.S. equity prices climbed from five- year lows late in the session.
New York oil futures dropped 17 percent last week, the biggest one-week decline since the U.S.-led invasion of Iraq in March 2003. Copper, nickel and aluminum also dropped as world equity markets plunged and the International Monetary Fund warned the world was on the cusp of recession.
Brent crude oil for November settlement rose as much as $2.91, or 3.9 percent, to $77 a barrel on London's ICE Futures Europe Exchange, and traded at $76.12 at 1:18 p.m. Singapore time. The contract slumped $8.57, or 10 percent, to $74.09 on Oct. 10, the lowest settlement since Sept. 4, 2007. It dropped 18 percent last week.
Oil fell from a record $147.27 in New York in July as demand expectations deteriorated and the weaker outlook in Europe and Asia lifted the dollar, reducing the appeal of commodities priced in the U.S. currency.