Oil prices rebounded today, reversing early losses as traders feared crude could break even more records because of stretched global supplies.
New York's main oil futures contract, light sweet crude for July delivery, added 70 cents to $127.32 a barrel. Brent North Sea crude for July gained 86 cents to $127.75.
Prices fell heavily in the five days up to the slender gains as traders took profits from a record-breaking run that saw crude surge beyond $135 last week on concerns about tightening energy supplies.
At $135 a barrel, oil was up by more than a third since the start of 2008.
Earlier, the market had traded in negative territory as traders took direction from the strengthening dollar, which makes oil more expensive for foreign buyers and tends to discourage demand.
In foreign exchange markets, the dollar resumed its climb against the euro and yen, after a rally overnight sparked by an upgrade to US economic growth.
