LONDON: Oil prices soared on Tuesday as the dollar weakened against the euro and on evidence that OPEC crude exporters were cutting production as promised, analysts said.
Earlier in the day the price of Brent North Sea crude sank close to a 21-month low point under 59 dollars a barrel as traders sold amid weak energy demand worldwide, they added.
Prices had fallen sharply also on market jitters about the outcome of Tuesday's US presidential election, said market watchers.
At 1750 GMT Brent North Sea crude for December delivery stood at 66.55 dollars a barrel, up 6.07 dollars from Monday's close.
"You're just seeing the dollar give back a lot of its gains in (the) last couple sessions. That's leading a lot of commodities higher," said Raymond Carbone, president of brokerage Paramount Options.
A weaker dollar makes oil priced in the US unit cheaper for buyers holding stronger currencies, pushing up demand. On Tuesday the euro jumped back above 1.30 dollars in late European deals.
Earlier on Tuesday Brent slumped to 58.38 dollars, the lowest level since February 21, 2007.
At 1750 GMT New York's main contract, light sweet crude for December delivery, stood at 70.55 dollars a barrel, up 6.64 dollars. Earlier it had fallen to 62.25 dollars.
Analysts said that prices rebounded also on news that OPEC producers were implementing cuts to output, as was pledged at a meeting of the cartel last month.
Algeria has slashed oil production by 71,000 barrels per day to honour a OPEC decision to reduce global daily output by 1.5 million bpd, the APS news agency reported Tuesday.
Algeria produced as many as 1.45 million bpd before the energy ministry implemented the cuts.
OPEC said last month it would reduce production to halt the slide in oil prices, which have lost more than half their value since striking record highs above 147 dollars a barrel in July when fears of supply disruptions sent them rocketing.
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