Oil prices rose to around $71 a barrel Friday from a 14-month low as investors bet fears that a severe global recession will devastate crude demand may be overblown, according to The Associated Press.

Oil has fallen by about half since reaching a record $147.27 on July 11.

"I think the market has been way oversold," said Gavin Wendt, head of mining and resources research at consultancy Fat Prophets in Sydney. "The sentiment has been dominated by fear and panic, and when people are scared, they just keep selling."

By mid-afternoon in Europe, light, sweet crude for November delivery was up 83 cents to $70.68 a barrel in electronic trading on the New York Mercantile Exchange.