Nov. 10 (Bloomberg) -- Crude oil rose more than $1 a barrel as China announced a $586 billion stimulus plan and the world's biggest nations pledged to bolster growth.

Oil rose more than $4 a barrel earlier on the plan from China, the world's second-biggest oil consumer. The Group of 20 nations said it's prepared to act ``urgently'' and called for lower interest rates. OPEC, the International Energy Agency and the U.S. Energy Department have cut fuel-demand forecasts over the past month.

``All eyes are on China,'' said Gianna Bern, president of Brookshire Advisory & Research Inc., an energy research consulting company based in Flossmoor, Illinois. ``It's been the developing countries that have been responsible for all the increase in demand in recent years.''

Crude oil for December delivery rose $1.37, or 2.2 percent, to settle at $62.41 a barrel at 2:47 p.m. on the New York Mercantile Exchange. Futures touched $59.10, the lowest since March 20, 2007. Prices, which have tumbled 58 percent since reaching a record $147.27 on July 11, are down 35 percent from a year ago.

Oil prices fell 10 percent last week as equities dropped, U.S. fuel stockpiles rose more than expected and the nation's unemployment rate climbed to a 14-year high.

``We are in the midst of major riptides,'' said Peter Beutel, president of energy consultant Cameron Hanover Inc. in New Canaan, Connecticut. ``There's a competition between the weak economy and what it means for demand on one side and all the stimulus that's being poured into the economy.''

Economic Contraction

The International Monetary Fund is forecasting that the economies of the U.S., Japan, Europe and the U.K. will all contract next year in their first simultaneous recession since World War II.

China's economy grew 9 percent in the third quarter, the slowest pace in five years, and export orders dropped to the lowest level since 2005. China will spend the equivalent of almost a fifth of its gross domestic product last year on infrastructure and encourage investments in machinery.

``The Chinese announcement initially gave the market a real boost,'' said Phil Flynn, senior trader at Alaron Trading Corp. in Chicago. ``This raises a lot of concerns. It's a warning that their economy, and energy demand, may be a lot worse than we have thought.''

The Organization of Petroleum Exporting Countries agreed on Oct. 24 to lower output quotas by 1.5 million barrels a day, the first cut in two years, after global demand fell.

Brent crude oil for December settlement increased $1.73, or 3 percent, to settle at $59.08 a barrel on London's ICE Futures Europe exchange.

To contact the reporter on this story: Mark Shenk in New York at mshenk1@bloomberg.net.

Last Updated: November 10, 2008 15:29 EST