Oil prices held above $71 this morning as a dispute between Iran and the West over Tehran's nuclear programme continued.
US crude for July delivery was trading up 12 cents at $71.49 a barrel early this morning after a high of $71.77. London Brent crude traded 9 cents higher at $70.68 after both markets were closed yesterday for holidays.
Opec delegates said the cartel would keep pumping at near maximum rates to soothe market fears.
Despite high production from the cartel, which controls about half of world oil exports, traders are worried that a stand-off between Opec member Iran and the West could lead to supply disruptions from the world's fourth-biggest exporter.
Iran said yesterday it had no intention of moving all its uranium enrichment work to Russia to allay fears it could use nuclear fuel technology to make atomic bombs.
World powers are expected to meet this week in Europe to complete work on a package of incentives and sanctions.
Worries over high prices leading to inflation and slower demand growth have balanced concerns over supply disruptions in recent weeks, taking oil down from a record high of $75.35 in April. Prices remain 17 per cent up this year.