Oil prices higher in Asian trade

World oil prices rebounded in Asian trade on Thursday after sharp falls on a bigger-than-expected rise in US crude reserves, analysts said.

New York's main futures contract, light sweet crude for August delivery, had dropped more than 10.50 dollars over two days.

On Thursday the benchmark contract rose 23 cents to 134.83 dollars a barrel after closing Wednesday at 134.60, off 4.14 dollars, at the end of US trading hours.

That fall followed a dive of 6.44 dollars on Tuesday, its sharpest daily decline since January 1991.

Brent North Sea crude for September delivery gained 49 cents to 136.30 dollars.

The Brent August contract expired on Wednesday, down 2.56 dollars at 136.19 dollars in London.

The US Energy Information Administration said Wednesday that crude inventories rose by 3.0 million barrels to 296.9 million barrels in the week ending July 11, confounding market expectations for a decline of 2.2 million barrels.

Oil prices had soared after breaking through 100 dollars at the start of 2008, and hit peaks above 147 dollars last Friday. The record prices sparked protests around the world, and fears for economic growth.