NEW YORK (Reuters) - Oil steadied on Tuesday as concerns the global economy could slip into recession and drag down demand outweighed optimism over the bank bailout plans.
U.S. crude traded up 13 cents to $81.32 a barrel in choppy trade by 12:51, after hitting $84.83 as commodities and stock markets rose on moves by governments to rescue banks gave investors a brief respite.
London Brent crude fell 13 cents to $77.33 a barrel.
Slumping demand in the United States and other big consuming nations and the mounting financial crisis have dragged crude off record peaks over $147 a barrel hit in July.
The United States announced plans to take equity stakes worth up to $250 billion in financial institutions after European powers agreed to recapitalize their banks on Monday.
The Dow Jones industrial average <.DJI> and the S&P 500 stock index <.SPX> were flat at midday after registering their biggest one-day point gain on Monday in the wake of last week's panic sell-off.
"People are worried about the economy right now, they are worried that demand is going to be down," said Mark Waggoner, president of Excel Futures.
"But I think we are still going to bounce back and two weeks from now we may see (crude) prices off to the races again. For one thing, demand in China still continues to rise."
No. 2 oil consumer China saw September crude imports rise 10 percent from a year earlier, clocking a second month of double-digit growth, as the country's majors made a limited restock amid signs of weakening demand.
Producer group OPEC has called an emergency meeting for November 18 to discuss the crisis, with some members calling for production levels to be reduced.
Analysts say the threat of a global recession could force OPEC members to be more tolerant of cheaper oil, although the threat of swelling stocks could force an output cut by early next year.
Support for prices came on news OPEC seaborne oil exports, excluding Angola and Ecuador, fell 600,000 barrels per day (bpd) in September, Lloyd's Marine Intelligence Unit (LMIU) said on Tuesday.
Oil traders also will watch the weekly U.S. petroleum inventory data to be released on Thursday.
Preliminary analyst forecasts have called for a 2.4 million barrel build in crude stocks, a 3.2 million barrel increase in gasoline supplies and a 0.8 million barrel rise in distillates. (Reporting by Matthew Robinson in New York and Joe Brock in London; editing by David Gregorio)
