Brent crude steadied at around $107 per barrel today as investors weighed potential Middle East supply disruptions against a deepening debt crisis in the euro zone that is clouding the outlook for global fuel demand.
Spain's plan to use public debt to revive one of its troubled banks has raised worries that it could recapitalise other weak lenders at a time when borrowing costs are already surging.
Brent crude for July delivery firmed 3 cents to $107.14 per barrel, after hitting a high of $108.04 in the previous session. US crude oil futures gained 37 cents to $91.23.
Supporting crude prices is the threat of war breaking out in the Middle East and disrupting global oil supplies.
Tension between major oil producer Iran and the West remains high after inconclusive discussions last week on Iran's nuclear programme.
Iranian officials have declined to grant access to a complex at the centre of Western suspicion that Iran is developing nuclear weapons capability, despite its repeated denials of any such ambition.
The International Atomic Energy Agency said last week satellite images showed "extensive activities" at Parchin.
Six world powers failed to persuade Iran last week to halt its most sensitive nuclear work, but they will meet again in Moscow next month to try to end a stand-off that has raised fears of a war that could threaten global oil supplies.
Reuters
