LONDON (Reuters) - Oil rose more than $2 a barrel on Tuesday after a big interest rate cut in Australia raised hopes that other countries would follow suit to bolster economic growth, a move that would support oil demand.
The market spiked briefly after a report that a U.S. warplane violated Iran's territory and was forced to land in Iran. An Iranian state television station later said the plane was Hungarian, with no U.S. military officials aboard.
The U.S. said it was unaware of any U.S. warplanes being forced to land in Iran.
U.S. crude was up $2.64 at $90.45 a barrel at 10:31 a.m. EDT. It had settled down $6.07 at $87.81 on Monday after hitting an eight-month low of $87.56.
London Brent rose $2.10 to $85.78 a barrel.
Oil's fall on Monday was part of an international market rout, triggered by the credit crisis.
Oil traders were skeptical the rally would last.
"It's a bit of a recovery, but hardly anything to speak of after very steep falls," said Christopher Bellew, a broker at Bache Commodities.
"It would be foolish to think the dawn has come in terms of oil prices going back up again."
Oil has plummeted from a record high of $147.27 a barrel, hit in July, as high fuel prices and the growing financial crisis slow oil demand in top consumer the United States and other industrialized nations.
OPEC
Oil's drop has caused worry for some members of the Organization of the Petroleum Exporting Countries.
"If this volatility continues, OPEC will have to do something," Shokri Ghanem, chairman of Libya's National Oil Corporation, told Reuters by telephone.
"We may sit down together before December," he said. OPEC's next meeting is in December in Algeria.
The spread of the credit crisis has intensified gloom about the global economic outlook and weakening prospects for oil demand.
The U.S. Energy Information Administration revised down its forecast for world oil demand growth in 2009 versus 2008.
The agency cut its forecast by 140,000 barrels per day from its previous estimate published last month.
Analysts are watching oil demand from China -- which helped drive oil's rally from $20 in early 2002 -- for signs the crisis is hitting consumption in the world's second-largest consumer.
News that Mexico's state-owned oil company Pemex was evacuating four offshore oil platforms due to tropical storm Marco could become supportive for prices.
Marco is expected to approach hurricane strength before reaching Mexico's Central Gulf Coast later on Tuesday.
(Additional reporting by Annika Breidthardt in Singapore; editing by Anthony Barker)
