But world growth could falter as governments pull back some of the extraordinary liquidity they pumped into markets, the World Bank said on Wednesday. US crude oil for March delivery, the new front-month contract after February expired on Wednesday, rose 14 cents to $77.88 a barrel by 0532 GMT. Prices hit their lowest this year at $76.76 on Tuesday. London Brent crude declined 1 cent to $76.31 on Thursday. "For all of this year we are going to have a big focus on China because it will be the main driver of demand," said Tony Nunan, a risk manager with Tokyo-based Mitsubishi Corp.
"Because it is a command-style economy, things can change quickly. What was bullish could turn bearish if China puts on the brakes." A 4 trillion yuan ($585 billion) fiscal stimulus package was complemented by an unprecedented surge in lending by China's predominantly state-owned banks, ensuring that the nation was the first major economy to recover decisively from the credit crunch. But the government has signalled it will tighten credit this year, calling on banks to increase reserves and curb lending.