Oil prices rebound after recent slump

       Oil prices rebounded yesterday after recent heavy falls triggered by fresh concer ns about the pace of economic recovery in the United States, the world's largest energy-consuming nation.
       New York's main contract, light sweet crude for November delivery, rose 65 cents to $66.54 a barrel.
       Brent North Sea crude for November delivery climbed 81 cents to $65.63 in London trade.
       "Crude prices are higher after the dollar weakened and G20 nations pledged to keep in place emergency economic stimulus (measures) until there is a durable recovery," said Sucden Financial Research analyst Nimit Khamar.
       "Prices were also supported following a research note from Goldman Sachs who left their price forecasts for crude unchanged at $85 by the end of the year and an average of $90 in 2010.'
       G20 leaders were yesterday set to say that economic stimulus measures to cope with the global financial crisis should be maintained "until a durable recovery is secured,' according to a draft of their joint statement.
       Oil closed down more than three dollars on Thursday as mixed US economic data and signs of sluggish US energy demand highlighted fears about a tepid recovery from the global recession.
       Prices fell almost three dollars on Wednesday in reaction to a large jump in US crude oil inventories - a sign that energy demand remains weak.
       Worries about the pace of the US economic recovery intensified after data Thursday showed existing home sales fell 2.7% in August to 5.10 million units,snapping a winning streak.
       On Wednesday, a widely-watched Department of Energy report showed US crude reser ves rose 2.8 million barrels in the week to September 18,against analyst expectations oF a decline.
       Stocks of distillates, which include heating fuel, rose by three million barrels last week. Distillates are closely monitored ahead of the northern hemisphere winter when demand for heating fuel peaks.
       Energy demand has plunged after the global economy slipped late last year into its worst recession since the 1930s.
       This sent oil prices tumbling from historic highs of more than $147 in July 2008 to around $32 in December.
       Prices have since recovered somewhat but investors remain concerned over the pace of the upturn.
       Oil prices rose strongly above $70 a barrel on Tuesday as the US currency hit a one-year low against the euro.
       Since oil is traded in the US currency,a weaker dollar makes the commodity more attractive to holders of stronger units, leading to greater demand and pushing prices higher.