Brent crude prices hovered near unchanged levels this evening as an increase in Libyan oil exports and rising production by Saudi Arabia countered continuing market support from tensions over Iran's nuclear programme.
After strengthening, the dollar weakened, supporting dollar-denominated oil to help push US crude higher.
Brent May crude edged down 13 cents to $125.68 a barrel in London, having fallen as low as $124.82. US crude rose 70 cents to $107.76 a barrel.
Fears of a supply disruption in the Middle East, as negotiations between the West and Iran over Tehran's disputed nuclear programme start, sputter and restart, have kept crude oil prices elevated in this year.
Iran has agreed to a new round of talks with the West, but Western sanctions against Tehran have affected oil exports. Concerns that a military strike on Iran's nuclear facilities would severely restrict supply continue to keep oil investors wary.
