Oil prices rally as G8 promises transparent market

Oil prices rebounded slightly on Wednesday after falls of more than five dollars a day earlier, as world leaders pledged to make the crude market more transparent.

Brent North Sea oil for August delivery jumped 1.88 dollars to 138.30 dollars a barrel in electronic deals.

New York's main oil contract, light sweet crude for August delivery, won 1.60 dollars to 137.64 dollars.

Oil prices had nosedived Tuesday as falling global equities and resurgent concerns about an economic slowdown stoked fears about future energy demand, traders said.

Group of Eight leaders pledged Wednesday to improve transparency and the supply and demand balance in the oil market by boosting dialogue between producing and consuming nations.

"In response to the sharp rise in oil prices, we agreed to improve balance in supply and demand through efforts and dialogue by both producing and consuming countries to improve transparency," they said in the final statement following their summit in Japan.