Crude oil rose for the first time in three days as equities gained and the dollar retreated against the euro, boosting the appeal of commodities as an alternative investment.

Oil increased as much as 0.9 percent as stocks climbed in the U.S. and Europe amid optimism that the global economic recovery is strengthening. Improved demand for bonds from Portugal to Poland curbed concern the European debt crisis is worsening. The dollar dropped for the first time in three days.

"The market climbs whenever there are any signs that the economy is recovering," said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut.

Eoin Treacy's view Oil has been slavishly following the performance of Wall Street for the last few months so with a more positive tone emerging for the US markets, oil has firmed once more and in the process held the progression of higher or equal reaction lows since the May nadir. A sustained move below $70 would be required to question scope for some additional upside.

Brent Crude, which is less influenced by US inventory data, has performed more impressively and continues to rally from the lower side of the three-month range, also having sustained the short-term progression of higher reaction lows.