Crude oil prices rebound sharply

London: Oil moved sharply higher on Wednesday, after falling for the past two days, supported by expectations of a further fall in US crude oil supplies and as Opec brushed off US calls to raise output.

US light crude for December delivery rose $2.22 to $93.39 a barrel by 1540 GMT. London Brent gained $1.78 to $90.61 a barrel.

Oil has fallen more than $7 a barrel from last week's record of $98.62, pressured by evidence that high prices may be affecting demand, after the International Energy Agency's latest monthly oil market report cut predictions for demand growth.

But a weak dollar and expectations that demand from emerging market countries will stay strong helped drive the market higher.

"All the reasons that have taken us above $90 are still here," said Harry Tchilinguirian, senior oil market analyst at BNP Paribas.

"If we have a very mild winter, then you could see prices cool off. If not, then oil demand growth remains strong in those areas that matter most: China, Asia and the Middle East."

Speculative inflows of money escaping difficult conditions in the credit markets have also helped bolster prices.

"You have a lot of large blocks of speculative capital in the market which is having a significant pricing impact and adding to volatility," said Jim Ritterbusch, president of Ritterbusch & Associates.