Oil prices rallied from steep early lows as European equities and the euro bounced on a better-than-expected German sentiment survey and speculation of more support from the European Central Bank.
Euro zone officials played down reports of emerging plans to halve Greece's debts and recapitalize European banks to cope with the fallout, stressing that no such scheme is yet on the table.
Crude prices briefly turned lower after a report that new single-family home sales in the United States fell in August to a six-month low pressured the euro, supported the dollar, and curbed Wall Street's rise.
