LONDON, July 21 (AFP) - Oil prices rebounded Wednesday ahead of the latest weekly estimates of commercial US inventories, shaking off heavy falls seen the day before.
The price of benchmark Brent North Sea crude oil for delivery in September climbed by 34 cents to 37.35 dollars per barrel in early afternoon trading in London.
New York's light sweet crude benchmark September futures won 29 cents to 40.73 dollars per barrel in pre-opening electronic deals.
"We are a bit stronger," GNI-Man Financial trader Robert Laughlin said.
"I think it is a reaction to the fact that we were slightly oversold last night," he said, adding that the market was nervous ahead of the latest US stocks figures.
Data was expected to show rises in stocks of crude and distillates but falls in gasoline, according to analysts.
World oil prices fell heavily Tuesday after climbing to near-record high levels in New York amid concern over strong global demand.
New York's light sweet crude for delivery in August expired at 40.86 dollars per barrel, down 78 cents. It had spiked to 42.30 dollars Tuesday, nearing the 42.45-dollar record posted in electronic trading on June 1.
Laughlin said profits-taking by funds had been the main reason for Tuesday's sharp drop in prices.
Oil prices had been rising in recent days on worries about possible renewed terrorism in the Middle East that would in turn impact supply.
In a bid to help offset rising prices, the Organization of Petroleum Exporting Countries agreed in June to raise its output ceiling by 2.5 million barrels per day by August 1.
Speaking Wednesday, OPEC president Purnomo Yusgiantoro said the cartel would discuss a further possible output rise for September.
Asked by reporters in Jakarta whether OPEC plans such an increase, Yusgiantoro replied: "We'll discuss it."
He said he would travel to Vienna, the site of OPEC headquarters, later Wednesday to discuss a report by a team which monitors market developments.
Yusgiantoro, who is also Indonesia's energy minister, said calls by OPEC for non-members to raise production have received no response even though it said they have large spare capacity.
Yusgiantoro said OPEC still had spare capacity but only for the short term.
"That is why we asked non-members to help increase world oil supply," he said.