NEW YORK (CNNMoney.com) -- Oil prices rose for the first time in four days as U.S. stocks were set to advance and the dollar eased, making crude a more attractive buy.
Gasoline prices fell for the first day in five, dipping to $2.922 a gallon from $2.929 the day before, according to motorist group AAA.
What prices are doing: Crude oil for June delivery jumped 84 cents to $77.95 a barrel, after dropping more than 3% the day before.
Crude prices surged Monday amid optimism aboutGreece's $146 billion bailout and the possibility that the Gulf of Mexico spill could halt supply. But the gains quickly faded, sending prices down some $9, or 11%, as fears of that the European debt crisis could spread shook the global markets.
Despite the whipsaw action, crude prices were still 27% higher than this time last year.
What's moving the market: Crude prices rose as U.S. stocks were set to open higher and as signs of stability in Europe helped push the dollar lower.
On Thursday, an apparent technical glitch pushed the Dow Jones industrial average (INDU) down nearly 1,000 points, or 9.2%, which was the biggest intraday percentage loss since 1987. The index quickly rebounded, although it still ended 348 points lower.
Stock futures were higher in early Friday trading. Futures measure current index values against perceived future performance and offer an indication of how markets may open when trading begins.
Crude prices were also supported by retrenchment in the dollar, with the greenback dipping 1.2% against the euro to $1.277 - the first decline in several trading days. Signs of stability in Europe, particularly Germany's reporrted imminent support of the Greek bailout, bolstered the euro.
A weaker dollar makes crude, which is priced in the U.S. currency, cheaper for foreign investors, bolstering demand and prices.
Though down in early trading, the dollar was still near 14-month highs against the European currency.
What analysts are saying: "The focus of the market today will be on whether and how quickly the stock market can snap back," said Tom Pawlicki, commodities analyst at MF Global. "If stocks are able to rally back today, it could boost energy prices."
Although crude prices turned higher Friday, Pawlicki said focus on Greece and contagion fears are likely to put downward pressure on oil prices over the near-term, especially as continued chaos in Europe sends investors away from risky assets such as equities and non-U.S. currencies.
Many analysts said that a bottom for crude oil prices is hard to determine, given the potential depth and breadth of Europe's woes. This could strengthen the dollar further, as investors flee to so-called safe-haven assets.
"Considering the fact that yesterday's selloff began with a problem in Greece that is unlikely to be resolved soon...oil prices could have a tough time advancing," said Pawlicki.
Looking ahead: The April jobs announcement, due out Friday, will be of particular interest to investors. Economists surveyed by Briefing.com expect 187,000 jobs were created last month, but that the unemployment rate will remain unchanged at 9.7%.
