That would be the fastest pace since February 2006. Front-month US crude futures settled on Friday below the 50-day moving average for the first time in three weeks and bounced back, setting an important support level at $78, said Mark Pervan, senior commodities analysts at ANZ.
US crude futures for February delivery climbed as much as 68 cents from Friday's close of $78, and were trading up 15 cents at $78.15 by 0751 GMT. They touched a three-week intraday low of $77.07 on Monday. Oil prices are still nearly 47 percent off their July 2008 high of more than $147 a barrel. NYMEX will combine prices for Monday and Tuesday into a single trading session because of the Martin Luther King Day holiday.
"There is growing expectation that the Chinese data will surprise on the upside," said Pervan from Melbourne, Australia. "This means reasonably strong commodities markets and oil is taking a lead from that." A weaker dollar encouraged riskier trades in commodities. "That is also positive for the oil market," Pervan added.
The NYMEX February contract expires on Wednesday. March futures, the front-month contract as of Thursday, rose 10 cents to $78.47 a barrel. The dollar fell to 90.51 yen, hitting a four-week low. London Brent crude futures for March delivery fell 28 cents to 76.82, after trading little changed on Monday.