LONDON, Oct 9: Oil prices rebounded sharply on Tuesday, reversing earlier losses in volatile trading on the eve of the US government’s snapshot of American energy inventories.

In London, the price of Brent North Sea crude for November delivery jumped $1.13 to $77.71 per barrel, after earlier diving as low as $75.90.

New York’s main futures contract, light sweet crude for delivery in November, leapt $1.58 to $80.60 per barrel. The contract earlier tumbled to $78.40.

Both contracts had plunged by more than $2.0 on Monday as the US dollar rebounded, and amid concerns that slowing US economic growth could hamper long-term global crude demand.

“I think it might be a reaction to Monday,” said Veronica Smart, analyst at the Energy Information Centre.“I was under the impression that the $2.0 was quite a big fall on not necessarily bearish news,” she added.Traders were meanwhile gearing up for Wednesday’s weekly US crude inventories report from the US Department of Energy.

Earlier on Tuesday, prices had fallen further as sentiment was hit again by the strengthening US currency, which makes dollar-denominated commodities more expensive for buyers using other currencies, analysts said.

“Generally, a weaker dollar helps to push dollar denominated commodities higher,” said Andrey Kryuchenkov at the Sucden brokerage in London.

Crude futures have sunk since striking records at the end of September, when New York crude hit $84.10 and London Brent oil surged to $79.05 per barrel.

Elsewhere, Qatar’s energy minister was reported as saying that crude oil prices should be more than $100 per barrel.

“If we take into account inflation from 1972 to the present day, the real and fair price for oil should be more than $100,” Abdullah bin Hamad Al-Attiyah said in remarks aired by Al-Jazeera television on Tuesday.

—AFP