Oil rebounds above $63 a barrel

Oil prices are still nowhere near the peak of $147 a barrel last July

Oil has bounced above $63 a barrel, buoyed by a positive US housing report.

US light, sweet crude rose $1.49 in afternoon trading to $63.51, while Brent crude rose $1.43 cents to $65.18.

Oil prices had slipped in early trading on concerns that demand in the US - the world's largest energy consumer - may be slowing.

"Then June housing starts came in [at] 3.6%, better than expected, providing a bounce off its lows," said Tom Bentz at BNP Paribas.

Crude is now on track for a weekly gain of more than 4% in New York, ending a four-week losing streak.

Oil prices have fallen nearly $10 since early July due to concerns over energy demand, which has contracted for the first time in a quarter of a century.

Last July, oil peaked at around $147 a barrel.