IANS | 17 Jul, 2008
World oil prices rebounded in Asian trade on Thursday after sharp falls on a bigger-than-expected rise in US crude reserves.

New York's main futures contract, light sweet crude for August delivery, had dropped more than USD 10.50 over two days.

The benchmark contract on Thursday rose 23 cents to USD 134.83 a barrel after closing yesterday at USD 134.60, off USD 4.14, at the end of US trading hours.

That fall followed a dive of USD 6.44 on Tuesday, its sharpest daily decline since January 1991.

Brent North Sea crude for September delivery gained 49 cents to USD 136.30.

The Brent August contract expired yesterday, down USD 2.56 at USD 136.19 in London.

The US Energy Information Administration said on Wednesday that crude inventories rose by 3.0 million barrels to 296.9 million barrels in the week ending 11th July, confounding market expectations for a decline of 2.2 million barrels.

Oil prices had soared after breaking through USD 100 at the start of 2008, and hit peaks above USD 147 dollars last Friday.

The record prices sparked protests around the world, and fears for economic growth.