Crude Oil Climbs as US Equities Advance, Dollar Retreats

(Bloomberg) - Oil advanced as U.S. stocks rebounded from the biggest rout since June and as the dollar retreated against its peers.

Futures closed 0.9 percent higher in New York, after dropping as much as 2.5 percent earlier. Equities climbed as Federal Reserve Governor Lael Brainard counseled continued prudence in tightening monetary policy. The U.S. currency erased a 0.3 percent gain, making commodities more appealing as an investment. Prices declined earlier after U.S. producers increased drilling and OPEC boosted its estimate for rivals’ output next year.

"Crude is along for the ride with equities," said John Kilduff, partner at Again Capital LLC, a New York hedge fund focused on energy. "Friday’s move seemed a bit overdone. Markets have been on tenterhooks because of concerns about central bank policies, but some calm has returned today."

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