Oil prices climbed to near 69 dollars a barrel on Tuesday, rebounding from overnight falls on hopes of a recovery for the ailing global economy.

New York’s main futures contract, light sweet crude for delivery in July, gained 86 cents to 68.95 dollars a barrel.

 
Brent North Sea crude for July delivery advanced 80 cents to 68.68 dollars.

 
“Investors are not ready to give up on oil and we expect more consolidation near recent highs,” said VTB Capital analyst Andrey Kryuchenkov

 
New York crude touched 70.32 dollars last Friday, the highest level since November 4
Data indicating that the worst may be over for the recession-battered US economy, the biggest in the world, are stoking hopes of a rebound for energy demand.

 
US employment figures released on Friday said the number of job losses slowed to a better-than-expected 345,000 in May.

 
The report, seen as one of the best indicators of economic momentum in the United States, suggested that the pace of massive job cuts is easing, a positive sign for the world’s biggest energy consumer.

 
“The bounce in commodity prices is likely to be sustained while… expectations of recovery continue to build,” London-based consultancy Capital Economics said in a note.

 
It cautioned however that “disappointment at the strength of the economic expansion should take the heat out of the latest rally.”

 
Some analysts said oil prices might have climbed too rapidly.

 
“I think there are still demand issues with this high unemployment rate continuing over the next months,” said Andy Lipow of Lipow Oil Associates.

 
After plunging from record highs above 147 dollars last July on supply concerns, oil prices touched multi-year lows in December, at one point nearing 32 dollars a barrel, as the economic slowdown crushed demand for energy