Oil rose to $67 today to recover some of the week's losses as traders focused on supply worries in major producers despite a healthier stock cushion in the United States.
US light crude was up 74 cents to $67 a barrel by 7.06 Irish time, adding to yesterday's 41-cent gain. London Brent crude climbed 68 cents to $65.60 a barrel.
Prices had pulled back from over $69 on Monday - the highest level since early September - as top exporter Saudi Arabia said it would fill any supply gap and US government data this week showed rising fuel stocks.
"The US inventory data clearly worried the market, but the Iranian and Nigerian situations are providing support to prices," said Tobin Gorey of the Commonwealth Bank of Australia.
As reduced production in Nigeria and tension over Iran's nuclear programme underpin prices, the Organization of the Petroleum Exporting Countries is expected to keep current output unchanged when it meets on January 31st, despite high levels of prompt supply.
"The next important meeting for the oil market will not be Opec but the International Atomic Energy Agency," said Mr Gorey.
The United States and its European Union allies have said it is time for the International Atomic Energy Agency, which meets on February 2nd, to turn Iran's nuclear dossier over to the UN Security Council, though China and Russia have urged caution.