Oil prices surged 3 per cent this morning as President Mr Hugo Chavez returned to power in Venezuela.
His return reassured markets that Venezuela would remain one of OPEC's most disciplined members to abide by output limits.
US benchmark light crude jumped to an early peak at $24.39 a barrel in Asia before easing to $24.20, marking a 73-cent rise from Friday's settlement in New York.
Prices fell heavily on Friday as military officials said Mr Chavez had resigned, raising the prospect of an end to six weeks of protests by workers at state oil firm Petroleos de Venezuela (PDVSA), which had disrupted oil production and exports.
The pre-weekend decline deepened to more than $1.50 after a PDVSA official said the country's output should be set according to market conditions and not under quota limitations agreed by the Organization of the Petroleum Exporting Countries.
Under Mr Chavez, the world's fourth biggest exporter emerged as one of OPEC's committed members honouring output limits after years of quota cheating.
Industry sources said last night oil exports from Venezuela had returned to roughly normal levels and that crude and refinery output crept up as PDVSA staff returned to work.
Oil operations had been in turmoil after six weeks of protest by PDVSA staff against a new board of directors appointed by Mr Chavez and a three-day national strike last week.