LONDON, Nov 7: Oil prices rose on Friday after slumping to 21-month low points below $60 on prospects for sliding energy demand because of a global economic slowdown, traders said.

On the New York Mercantile Exchange (NYMEX), light sweet crude for delivery in December jumped $1.49 to $62.96 a barrel.

Earlier, the contract briefly dipped below the 60-dollar level to $59.97, its lowest level since March 2007.Brent North Sea crude for December was trading up $1.37 at $58.80 a barrel on London’s InterContinental Exchange (ICE) on Friday.

Brent had dived on Thursday $4.44 to settle at $57.62, the lowest level since early 2007.

“Despite interest rate cuts around the globe on Thursday, many, including us, believe there will be yet further significant slowdown in oil demand growth,” said Sucden analyst Michael Davies.

Fears of the sharp global downturn have intensified after the International Monetary Fund on Thursday warned that advanced economies would contract in 2009 for the first time since World War II. The IMF said advanced economies would now shrink by 0.3 percent in 2009.

The organisation had previously predicted 0.5 percent growth.

Oil prices have plunged in recent months as a global economic slowdown dampens demand for energy worldwide, coming off record highs above 147 dollars in July when fears of supply disruptions had sent them rocketing.

The International Energy Agency said Thursday that it expected the price of oil to rebound above $100 and eventually reach $200 by 2030. The agency said the figures represented a major adjustment from its forecasts last year after a review of the outlook for production costs and demand.

A decline in oil prices gained momentum on Wednesday after US figures showed US gasoline (petrol) stockpiles had jumped 1.1 million barrels last week, confounding market expectations for a drop of 600,000 barrels.—AFP