By Jacob Gronholt-Pedersen Crude-oil futures continued to rebound in Asian trading Tuesday, following equities and the euro higher ahead of G-7 emergency talks over the European debt crisis. Oil suffered heavy losses in a four-session streak last week on concerns that a slowing global economy and fresh worries over the European economic recovery will dent demand for the commodity. News that the G-7 will hold emergency talks Tuesday to discuss developments in the euro zone pushed the euro to a two-week high and Brent back toward the $100 level. On the New York Mercantile Exchange, light, sweet crude futures for delivery in July traded at $84.45 a barrel at 0656 GMT, up $0.47 in the Globex electronic session. July Brent crude on London's ICE Futures exchange rose $0.34 to $99.19 a barrel. "We feel that the complex has become a bit overcooked technically and may require a price bounce back to around last Friday's highs in order to attract fresh selling," Jim Ritterbusch of Ritterbusch & Associates said in a note. Nymex peaked at $86.50 and Brent at $102 on Friday. Investors are cautious ahead of the European Central Bank's rate-setting meeting later in the week, at which it's widely expected to cut its key policy rate by 25 basis points, providing further support. With otherwise limited macroeconomic data due this week, investors await inventory statistics on Thursday and U.S. Federal Reserve Chairman Ben Bernanke's testimony to Congress on Friday before a crucial week of Greek elections, an OPEC meeting and a new round of nuclear talks with Iran. Saudi Arabia in the past month had tried to push down the market by increasing production and saying it sought a Brent price around $100 a barrel. Comments from Iran and Iraq Monday suggest they will together push to keep OPEC's output unchanged. "Saudi Arabia may try to talk the market up a bit, but I don't think they are going to be willing to cut production," said Nicholas Trevethan, analyst at ANZ. Following a drop in crude prices of more than 20% in May, prices are unlikely to fall further, he said. "People are seeing the bottom around these levels. We could see a 5% gain toward the end of the month," said Trevethan. Nymex reformulated gasoline blendstock for July--the benchmark gasoline contract--rose 115 points to $2.6822 a gallon, while July heating oil traded at $2.6362, 93 points higher. ICE gasoil for June changed hands at $851.50 a metric ton, up $8.50 from Monday's settlement. Write to Jacob Gronholt-Pedersen at jacob.pedersen@dowjones.com

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