Oil up $2 at above $63 on China stimulus, G20 moves

PERTH: Oil leapt over $2 to above $63a barrel on Monday, lifted by hopes that China's massive $600 billion stimuluspackage and proposals from world's leading economies to boost growth would fightoff the threat of global recession and revive energy demand.

At theannual meeting of the G20 group in Brazil, finance ministers and central bankgovernors representing 90 percent of the world's economy vowed to take allnecessary measures to get financial markets back on its feet and counter thecredit crisis, with China going a step further by announcing a massive stimulusplan. U.S. light crude for December delivery rose $1.98 to $63.02 abarrel by 2337 GMT, after rising as much as $2.14 soon after the start ofelectronic trading. London Brent crude rose $1.85 to $59.20.

"The proposals made at the G20 meeting and the relief package out ofChina really helped the markets this morning," said Mark Pervan, a seniorcommodities analyst at the Australia & New Zealand Bank. "The message overthe weekend was supportive and it is clear that governments around the worldwill do all it takes to prevent a deep global recession." China launched a hugestimulus plan on Sunday worth nearly $600 billion, kicking off what could be around of big spending or interest rate cuts by leading economies to stave off arecession in many countries China's massive government spending package to boostdomestic demand is "good news" that will help the global economy ride out thefinancial crisis, the International Monetary Fund's managing director said onSunday.

Oil lost nearly 10 percent this week and dipped below $60 onFriday, the lowest since March 22, 2007. OPEC will cut oil output again if thetrend towards lower prices and slowing demand growth are unchanged when thegroup meets in December, Iran's OPEC Governor Mohammad Ali Khatibi told Reuterson Sunday. Khatibi added that the credit crisis and economic slowdown couldshave as much as 3 million barrels per day from global crude demand.

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