LONDON, Jan 10: World oil prices rebounded on Tuesday, as supply concerns and robust demand offset milder weather in the United States, the world’s biggest consumer of heating fuel, analysts said.

New York’s main contract, light sweet crude for delivery in February, gained 69.0 cents to $64.19 per barrel in electronic dealing.

In London, the price of Brent North Sea crude for February delivery advanced 59.0 cents to $62.60 per barrel.

Crude oil prices had Monday closed lower, hit by forecasts of milder weather in the north-east region of the US, traders said.

“The factors that are supporting the market are the weakening dollar, which makes oil and gold more attractive (investments), low gasoline (petrol) stocks, geopolitical factors... and expectations that rapidly growing global demand for oil will keep markets tight for years to come,” analysts at the Sucden brokerage firm said on Tuesday.

Oil prices had surged by more than one dollar to close at three-month highs last Friday as funds poured into the market on concerns over Russian energy supplies and peace in the oil-rich Middle East.

“Strong US economic growth is also increasing demand, despite the high prices and last week gasoline (prices) crossed back above heating oil ahead of the peak summer demand season” in the United States beginning in May, Sucden analysts added.

“Chinas voracious appetite (for energy) also continues as its growth continues to surge. These factors seem enough to support the market but we are not sure if they can outweigh the glut of oil supply currently seen and drive the market back to $70.0 a barrel.”

Crude futures hit historic high prices last August following the devastation wrought by Hurricane Katrina on US Gulf Coast energy installations, striking $70.85 per barrel in New York and $68.89 in London.—AFP