LONDON (AFP) - World oil prices shot above 76 dollars on Tuesday as the dollar fell and the market tracked the outlook for crude demand. New Yorks main futures contract, light sweet crude for delivery in March, was up 2.43 dollars at $76.56 at about 1530 GMT. Brent North Sea crude for April delivery rocketed 2.72 dollars to $75.23 a barrel. In foreign exchange trading on Tuesday, the euro recouped some of its recent losses against the dollar. A weaker dollar makes crude priced in the greenback cheaper for buyers using other currencies, boosting demand. Crude prices were supported by a weakening US dollar as the euro strengthened, said Myrto Sokou, an oil market analyst at Sucden Financial Research in London. Oil prices meanwhile rose strongly on Tuesday after recent losses caused by a falling euro and Chinas latest bid to cool down its booming economy, traders said. China is the worlds second biggest oil consuming nation after the United States. The market had certainly overreacted as the worlds second largest energy consumer is still going to see a substantial energy demand increase this year and its growth will occur regardless of the governments attempts to curtail lending, commodities analyst Andrey Kryuchenkov of Russian investment bank VTB Capital said on Tuesday. Oil trading volumes were meanwhile expected to pick up later on Tuesday as US traders return to work after Mondays public holiday in the United States. Commerzbank analysts on Tuesday forecast that prices were at risk of heading lower. On the back of high commercial inventories of crude oil and oil products, a weak refinery demand in the western world and expanding OPEC production we continue to see downside risk for the oil price, they wrote in a research note to clients. Weak oil demand is reflected in falling freight rates, which fell by as much as 17 percent within a week for the route from the ME to Japan and by just under seven percent for the route from the Middle East to the US, they added. The OPEC oil producers cartel last week held its forecast for modest growth in world oil demand this year, but warned the slow pace of economic recovery was clouding the outlook. World oil demand in 2010 was forecast to grow by 0.8 million barrels per day (bpd) to average 85.1 million bpd, predicted the Opec.