LONDON, March 31: Oil prices rallied above $106 on Monday, shaking off early losses caused by concerns over weak demand for crude in traditionally energy-hungry Japan and the US, traders said.

New York’s main oil contract, light sweet crude for delivery in May, jumped 81 cents to $106.48 per barrel. Brent North Sea crude for May climbed $1.23 to $105.

“Despite expectations for declining oil demand growth amid a US-led global slowdown, supply and demand factors are still tight ... (and) any supply shocks are still likely to have a large effect on crude prices,” said Sucden analyst Nimit Khamar. Oil prices had fallen earlier on Monday owing to worries about sliding energy demand in the world’s two richest countries.—AFP