Crude oil rebounded from its biggest two-day decline in almost four years after the Federal Reserve agreed to rescue American International Group Inc, easing concerns of a further economic slowdown in the US.

Oil also recovered before a US government report forecast to show that Hurricanes Gustav and Ike caused crude stockpiles to fall a fourth week, while raids against oil facilities in Nigeria entered a fifth day.

Goldman Sachs Group Inc cut its three-month forecast for crude oil to $115 a barrel from $149, citing the global credit crisis and demand weakness.