Oil prices have jumped by more than $2 a barrel, reversing three days of losses as traders bet on a further falls to energy stockpiles in the US.
Despite rising, prices remained well off historic highs of above $100 reached last week.
US crude jumped $2.21 to $97.30, having struck a record high of $100.09 last Thursday. Brent crude also gained $2.10 to $96.49. Its record set last week is $98.50.
The US Department of Energy (DoE) is due to publish its weekly snapshot of American crude stockpiles on Wednesday.
Oil prices had fallen sharply on Monday despite the Pentagon's reporting a weekend encounter between the US Navy and Iranian vessels in the strategic Strait of Hormuz.
