By V. Phani Kumar
NEW YORK (MarketWatch) -- Crude-oil futures erased early losses to rebound Monday as the U.S. dollar index DXY -0.08% gave up early gains and stocks on Wall Street came off sharp initial declines. Light, sweet crude futures for October delivery CL1V +0.40% rose 57 cents, or 0.7%, to 87.81 a barrel on the New York Mercantile Exchange. The recovery came as the Organization of Petroleum Exporting Countries Monday cut its 2012 oil demand forecast and said some of its members could lower production as a slowing economy weakens demand and as Libyan crude exports could resume faster than expected.
