Brent crude futures were last up 11 cents on the day at $65.06 a barrel by 1017 GMT, up from an earlier low of $64.67, while U.S. West Texas Intermediate (WTI) crude futures were up 17 cents at $61.53 a barrel.
"It appears that money managers are getting rid of their long positions and this is why the front-end spreads of the two main crude oil futures contracts have been drifting lower lately".
Last week's U.S.jobs data, as well as an easing of fears over a global trade war, boosted stocks across the world.
Unlike Middle Eastern nations such as Saudi Arabia, which wants high crude prices to boost the value of its IPO of state-run Aramco, Iran expressed its concern over steadily-rising US production by stating it wants to work with the Organization of the Petroleum Exporting Countries (OPEC) to keep prices at $60 and curtail the output. Rig counts serve as a loose gauge of future production, though the slip has been overshadowed by steady upward revisions to expectations for total USA crude oil production.
Investors are weighing increased USA supply against the likelihood that the Organization of the Petroleum Exporting Countries will maintain supply cuts that have been in effect more than a year.More news: Manchester United midfielder Scott McTominay called up by Scotland after England snub
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Traders attributed the recent increase to a drop in the number of U.S. drilling rigs for production and the reported job increase in the USA which is expected to push fuel demand higher. The resulting fallout could drag down crude prices after a rally of more than 40 percent since June, he said. That is not far off the 2.957 percent yield on February 21, the highest since the instrument yielded more than 3 percent in January 2014.
Emerging market stocks rose 1.21 percent. "They continue to give market share away to the U.S".
"We're seeing some positive follow-through, but it would not surprise me to see some profit-taking coming off a very powerful performance on Friday", said Andre Bakhos, managing director at New Vines Capital LLC in Bernardsville, New Jersey. The dollar index fell 0.24 percent, with the euro up 0.26 percent at $1.2337.
The Japanese yen strengthened 0.37 percent versus the greenback to 106.39 per dollar, while sterling was last trading at $1.3906, up 0.40 percent on the day.