LONDON, July 27: Oil prices rebounded on Friday from a fall provoked by fears that demand for energy could decline as strains in the US economy spread around the world, dealers said.

In London, the price of Brent North Sea crude for September delivery rose by 57 cents to $75.75 per barrel in electronic trade.

New York’s main futures contract, light sweet crude for delivery in September, jumped 99 cents to $75.94 per barrel in electronic deals before the start of US floor trading.

“Crude oil was up ... bouncing back after Thursday’s selloff that was triggered by concerns the US subprime mortgage crisis could spread to other markets,” Sucden analyst Andrey Kryuchenkov said.

“There are concerns that petroleum demand could be impacted,” he added.

On Thursday, world oil prices closed down about a dollar amid renewed US economic fears and a rout across global equity markets.

Before sliding however, the New York contract struck $77.24 — a level last seen on August 9, 2006 — as keen global demand and tight supplies fuelled speculative buying.

It has been a volatile week for the oil market, with prices beginning the week lower, before spiking and then falling again.—AFP