UPDATE 1-Oil tops $74, nears 10-month high on recovery hopes

                                
 * Oil extends gains, rises above $74 on economic optimism
                                
 * Hurricane Bill moves towards energy facilities in Canada
                                
 * Fed Chairman Bernanke says world economy on mend (Updates
prices, Asian shares performance)
                                
 By Fayen Wong
                                
 PERTH, Aug 24 (Reuters) - Oil rose above $74 a barrel on
Monday, extending its rally to trade near a 10-month high, on
optimism energy demand will rebound as the U.S. economy heads
for a recovery, while a storm off eastern Canada also lent
support.
                                
 A string of positive economic data from various countries
across the globe, combined with a weakened U.S. dollar and
rallying stock markets have helped lift oil prices by 9.45
percent last week -- the highest weekly gain in 13 weeks.
                                
 U.S. crude for October delivery <CLc1> rose 20 cents to
$74.09 a barrel by 0435 GMT. The contract settled up 98 cents
at $73.89 per barrel on Friday, the highest settlement since
Oct. 20.
                                
 London Brent crude <LCOc1> gained 46 cents to $74.65.
                                
 "Oil is still drawing support from the positive data on
Friday," said David Moore, an analyst at the Commonwealth Bank
of Australia. "There aren't too many economic indicators due
today that will push oil prices much higher, but any damage to
oil and gas facilities off Canada would add upside pressure."
                                
 Oil's Friday gains followed home sales data for July
showing recovery in the U.S. housing market, while Federal
Reserve Chairman Ben Bernanke also said the global economy
appeared to be recovering.
                                
 Growing signs of an economic improvement helped to spur
risk appetite, prompting Asian stocks to jump more than 2
percent on Monday, lifting world shares to a 10-month high.
[ID:nLO216306]
                                
 In China, the world's No.2 energy consumer, apparent oil
demand rose 3.5 percent in July from a year earlier -- the
fourth rise in a row, Reuters calculations from official data
showed. [ID:nPEK361266]
                                
 On the weather front, Hurricane Bill brought rain and heavy
winds to Nova Scotia in eastern Canada on Sunday, after
pounding the U.S. East Coast with heavy seas that killed two
people. [ID:nN2371623]
                                
 However, threats to energy facilities have not yet passed.
Bill, the first hurricane of the 2009 season, is now heading
towards Atlantic Canada -- an energy producing region that
exports oil, natural gas and refined products to the U.S.
Northeast and elsewhere.
                                
 Separately, analysts say renewed tensions in Nigeria could
also add further support to oil, should investors' continue
their focus on a more bullish outlook.
                                
 Nigeria's main rebel group said on Saturday it would resume
attacks against Africa's biggest energy industry next month,
overshadowing the surrender of hundreds of arms by rebels in a
federal amnesty programme. [ID:nLM66894]
                                
 Investors will watch this week's new home sales and
consumer data to see if the economy's recovery is on track and
whether U.S. stocks -- now at their 2009 highs -- will extend
their rally. [ID:nN2187427]
                                
 Crude oil speculators on the New York Mercantile Exchange
trimmed their net long positions in the week to Aug 18,
according to data from the Commodity Futures Trading Commission
released on Friday. [ID:nN2179185]
 (Editing by Ben Tan)