NEW YORK ? Crude oil prices rebounded Tuesday as a stronger-than-expected report on US industrial production prompted reassessment of growth prospects in the world's biggest economy.

New York's main contract, light sweet crude for January, rallied $1.19 to close at $70.67 per barrel after nine consecutive losing sessions.

In London, Brent North Sea crude for delivery in January added 16 cents to settle at $72.05 a barrel.

US industrial production increased by a sharp 0.8 percent in November, led by gains in manufacturing of automobiles, appliances, home furnishings as well as consumer goods.

Mike Fitzpatrick at MF Global said the report "has injected renewed confidence into the market" and "suggests a subsequent growth in energy demand."

Still, he said overall energy demand will be held back by high unemployment: "The stellar data though is offset by the 7.2 million jobs lost since the recession began two years ago. Until consumers return to work in significant numbers, sentiment will probably remain pessimistic."

Fitzpatrick said that with the US economy still struggling, "we expect prices to move back into the $67-72 zone through the first quarter of 2010, after which they should move up quickly as recovery takes hold on a wider and more sustainable basis."

Meanwhile, the OPEC oil producers' cartel on Tuesday upgraded slightly its forecast for world oil demand growth next year but said usage in advanced economies would contract again.

World oil demand is meanwhile "forecast to return to growth in 2010 following two years of devastating declines," the Organization of Petroleum Exporting Countries (OPEC) said in its December report.

It said demand would grow by 0.82 million barrels per day (bpd) or 0.9 percent to average 85.13 million bpd, up slightly from its previous forecast for an increase of 0.75 million bpd.

But growth would be driven by developing countries, with demand in industrialized nations continuing to contract, the cartel said.

The cartel is set to hold a meeting to discuss output on December 22 in the Angolan capital Luanda.