By Virginia Harrison, MarketWatch
MADRID (MarketWatch) — U.S. benchmark crude-oil futures jumped in electronic trading Monday, tracking gains for stocks, after moves by China to ease monetary policy buoyed investor sentiment while geopolitical tensions also lent support.
Crude for March delivery CLH2 +2.66% rose $1.75, or 1.7%, to $104.99 a barrel on the New York Mercantile Exchange during European trading hours.
Oil closed at a nine-month high in New York trading on Friday, as lingering geopolitical concerns and rising optimism about the resolution of the Greek-debt saga drove investor interest. Read more on Friday's oil session.
Over the weekend, the People’s Bank of China reduced major lenders’ reserve-requirement ratios — or the amount of money banks must hold in reserve — to increase liquidity in the world’s second-largest economy.
The moves, coupled with expectations of a second bailout for Greece when Eurogroup ministers meet later Monday, helped lift stocks and commodities during the Asian session. See Asia Markets report.
Geopolitical tensions continued to simmer after Iran said it had stopped crude exports to France and the U.K. on Sunday. Read about Iran reportedly seeking new customers for its oil.
Last month, the European Union imposed sanctions on Iran amid rising tensions over the nation’s nuclear program. Read more on Iran and the oil market.
A softer U.S. dollar also supported crude, with the dollar index DXY -0.62% , which measures the greenback’s performance against a basket of six other global rivals, dropping to 78.892 from 79.334 in North American trading late Friday. Read more on currencies.
A weaker greenback can support oil buying, as it makes the commodity more affordable to holders of other currencies.
