Oil slipped below $61 today amid persisting worries over the fiscal outlook of the US, but losses were limited by data showing a big increase in Chinese oil demand last month.
US crude fell 12 cents to $60.93 by 3pm, down from the day's high of $61.98. London Brent fell one cent to $59.92.
Oil hit a six-month high of $62.26 earlier this week. Oil has recovered from a five-year low below $33 in December, having plunged from record highs above $147 last July.
The Nigerian military has launched its biggest campaign in years in the country's oil heartland, bombarding militant camps, which has sent fears of further supply disruptions from the West African country through oil markets.
In the US, a refinery fire and outages pushed up gasoline prices ahead of the Memorial Day holiday this weekend which kicks off the country's summer driving season.
In China, the world's second-largest energy consumer, apparent oil demand rose 3.9% in April from a year earlier, data showed. It was the first significant rise since October last year.
Oil traders were expected to shift their focus to next week when the OPEC will meet to review its output policy in Vienna on Thursday.
OPEC is expected to keep its official production levels unchanged as rising prices have eased pressure on budgets, and there are hints of economic recovery over the next year.
