LONDON, May 28: World oil prices rebounded towards $130 per barrel on Wednesday, reversing earlier losses in volatile trade amid lingering worries about stretched global energy supplies, analysts said.

New York’s main oil futures contract, light sweet crude for July delivery, gained 64 cents to $129.49 after earlier sliding as low as $125.96. Brent North Sea crude for July rallied 66 cents to $128.97, having earlier touched an intra-day low of $126.04.

“The market still remains well supported by persistent supply concerns due to rising energy demand and limited spare capacity on the supply side,” said Sucden analyst Andrey Kryuchenkov.

Both contracts had hit historic peaks above $135 last Thursday as speculative trade was driven by tight global supplies and a weak dollar, which makes commodities priced in the US unit cheaper for foreign buyers.But prices tumbled by more than $3 on Tuesday because of profit-taking and growing jitters about demand in the United States.

The market slid “following the release of poor (US) economic data and fears that high fuel prices may curb demand,” wrote analysts at energy consultancy John Hall Associates.

“Poor economic data increases the chances of a recession, potentially curbing demand for oil related products.”

However, sky-high oil prices continue to spark international concern and have prompted protests worldwide over soaring fuel and food costs. The market was also supported by unrest in crude-producing countries and Opec’s reluctance to hike output.

Indonesia said on Wednesday that it would withdraw from the Organisation of Petroleum Exporting Countries after years of declining exports.—AFP