Oil up on Greece hopes

Crude oil rose on Wednesday, rebounding from a sharp decline as hopes that Greece’s debt restructuring will go through lifted the euro against the dollar, creating better bargains for oil buyers and fanning interest in riskier trades.

Also helping oil recover from the previous day’s sharp drop was data showing an accelerated pace of job creation in the U.S. private sector in February, raising optimism about Friday’s government employment report for that month.

News that China plans to increase energy imports this year, seen leading to a better second half, helped pull up oil prices in early trading.

"The dollar’s reversal on the news that more private bond holders are participating in the Greek debt swap has given way to the return of risk-on oil trades," said Addison Armstrong, senior director of market research at Tradition Energy in Stamford, Connecticut.

In London, ICE Brent crude for April delivery settled at $124.12 a barrel, up $2.14, or 1.75 percent, rebounding strongly after declining $1.82 on Tuesday. In post-settlement dealings, the Brent contract’ session high further increased, to $124.45.