LONDON, Oct 7: Oil prices rebounded on Tuesday after Libya called on crude producers to cut output to protect their incomes if the market continued trading at current levels.

Crude oil futures have in recent days traded within a band of about $80-95 a barrel, well off the record highs of $147 reached in July.

New York’s main contract, light sweet crude for delivery in November, jumped $2.22 to $90.03 a barrel in electronic deals on Tuesday, recovering from sharp falls suffered on Monday.

Brent North Sea crude for November gained $1.40 to $85.08 a barrel.

Oil had nosedived under $90 per barrel on Monday, hitting eight-month low points, as deepening global financial turmoil and plunging stock markets raised fears about slowing demand.

“If the price level continues as it is we are seriously thinking of cutting down our production and calling other member countries in Opec, and non-Opec producing countries, to cut their production to safeguard their incomes,” Shukri Ghanem told AFP by telephone.

The market was also bolstered on Tuesday by growing hopes that the world’s central banks could cut their interest rates in a bid to boost troubled financial markets. —AFP