January 25, 2008	Friday	Muharram 15, 1429

LONDON, Jan 24: World oil prices rebounded on Thursday as global stock markets firmed, China revealed strong growth numbers and on expectations that Opec will not increase crude output next week, traders said.

Gains were curtailed, however, by news that stockpiles of US crude rose stronger than expected last week, which eased worries about tight supplies.

New York’s main contract, light sweet crude for delivery in March, jumped 50 cents to $87.49 per barrel. The February contract expired Tuesday at $89.85.

Brent North Sea crude for March gained 80 cents to $87.42.

“Economic fears continue to dominate oil headlines, but unless the economic situation deteriorates even further and we see more heavy losses on global equity markets, crude should remain firm in the longer run,” said Sucden analyst Andrey Kryuchenkov.

Traders said rapid economic growth in China a major consumer of oil was also supporting crude prices on Thursday.

Fears of a recession in the US, the world's biggest energy consumer, has led the market to believe that oil demand could fall sharply, even in China.

Meanwhile market participants believe that because crude prices have dropped heavily from record highs above 100 dollars a barrel earlier this month, the Organisation of Petroleum Exporting Countries will decide against hiking oil output when it meets on February 1 in Vienna.

On Thursday meanwhile, the US Department of Energy announced that US crude inventories had risen by 2.3m barrels in the week to January 18.—AFP