US oil prices rose for the first time in four sessions as Wall Street posted a stronger open and as a pipeline blast in China shut a key oil port and curbed refinery output.
However, oil gave back much of its gains as US stocks seesawed, lifted by news from Halliburton and Boeing but dragged down as a homebuilder index fell to its lowest point in more than a year, sparking new fears about the pace of a recovery and demand for oil.
US crude oil for August delivery rallied $1.68 to an early intraday peak of $77.69 before easing back to trade at $76.20 a barrel, up 19 cents, by late afternoon.
The contract settled 61 cents lower at $76.01 on Friday, a third consecutive drop but ending little changed from the previous week.
London ICE Brent crude on Monday gained 5 cents to to $75.42, well off its earlier $77.20 peak.
The euro hovered near a two-month high against the dollar today, rebounding from lows hit after a downgrade of Ireland's sovereign ratings. Despite the euro strength, the dollar index managed a gain.
Oil prices and the stock market were weighed down late last week by concerns about the pace of economic growth and gloomy consumer sentiment.
The US August crude contract expires on Tuesday, also helping to keep trading choppy as market participants adjust positions before the September contract takes over the front-month spot, trading sources said.
