World oil prices bounced tentatively higher yesterday in a correction to Monday's biggest single day's drop since the 1991 Gulf War. Brent crude futures were up 80 US cents at $22.82 a barrel at the start of US trade after dipping to an intra-day low of $21.70 on Monday, the lowest level for 17 months. Monday's 13 per cent decline was the largest daily price drop since January 17th, 1991, when the United States and its allies began the air war against Iraq for its invasion of Kuwait.

The falls were triggered by the receding prospects of an oil supply disruption in the Middle East, as major oil powers said they would keep oil supplies flowing.