Oil rose today, rebounding from last week's multi-month lows on speculative buying and as concerns resurfaced over supplies from the crude-rich Middle East.
The market was also supported by Group of Eight (G8) leaders calling for Greece to stay in the euro zone at a weekend summit in the US as they debated deep divisions about how best to tackle Europe's fiscal woes.
Brent North Sea crude for delivery in July advanced $1.10 to $108.24 a barrel, while New York's main contract, West Texas Intermediate (WTI) crude for delivery in June increased by 74 cents to $92.22 a barrel.
Crude futures had slumped last week as the market was rattled by concern about the weak demand outlook arising from the euro zone crisis. Before the weekend, Brent crude struck $106.40 on Friday, touching the lowest point since late December. New York's light sweet crude sank to $91.60, which was the lowest level since early November.
The market also advanced today ahead of a crucial meeting on Iran later this week. G8 leaders on Saturday sent a strong message to major producer Iran that tough sanctions imposed over its nuclear programme would be firmly applied, days before the next round of nuclear talks between global powers and Tehran in Baghdad.
Iran faces a raft of sanctions from the United Nations, the US and the European Union over suspicions that the Islamic republic's nuclear programme masks a push to develop atomic weapons.
Tehran insists its nuclear programme is just for peaceful uses, and threatened to blockade the strategic strait of Hormuz if it is faced with further measures.
Elsewhere, fears over the euro zone's debt troubles were slightly soothed by a broad agreement by the G8 leaders for the bloc to embrace growth measures along with austerity as a way to stave off a major debt contagion. The G8 club of developed nations is made up of Britain, Canada, France, Germany, Italy, Japan, Russia and the US.
Crude futures had slumped last week as the market was rattled by concern about the weak demand outlook arising from the euro zone crisis.
Before the weekend, Brent crude struck $106.40 on Friday, touching the lowest point since late December. New York's light sweet crude sank to $91.60, hitting the lowest level since early November.
The oil market also advanced today ahead of a crucial meeting on Iran later this week. G8 leaders over the weekend sent a strong message to major producer Iran that tough sanctions imposed over its nuclear programme would be firmly applied, days before the next round of nuclear talks between global powers and Tehran in Baghdad.
Iran faces a raft of sanctions from the United Nations, the US and the European Union over suspicions that the Islamic republic's nuclear programme masks a push to develop atomic weapons. Tehran has so far denied the charges, and threatened to blockade the strategic strait of Hormuz if it is faced with further measures.
Elsewhere, fears over the euro zone's debt troubles were slightly soothed by a broad agreement by the G8 leaders for the bloc to embrace growth measures along with austerity as a way to stave off a major debt contagion.
The G8 club of developed nations is made up of Britain, Canada, France, Germany, Italy, Japan, Russia and the US.
