LONDON, Jan 20: Oil prices rebounded above 39 dollars on Tuesday after tumbling close to a four-year low in a very volatile market plagued by weak global demand, traders said.

New York’s main contract, light sweet crude for delivery in February, jumped 2.61 dollars to 39.12 dollars a barrel, after earlier falling as low as 32.70 dollars.

Traders said the February contract spiked higher in volatile light trade ahead of its expiry later Tuesday, when it will be replaced by the March contract.

In London, Brent North Sea crude for March delivery gained 99 cents to 45.49 dollars.

Despite Tuesday’s gains, prices have slumped dramatically since hitting record peaks above 147 dollars last July as a global economic slowdown has slashed world energy demand.—AFP