US oil futures headed towards $108 a barrel this afternoon, joining gains across commodities and equities markets.
Light sweet crude for May delivery rose $1.31 cents to $107.54 a barrel after leaping $2.40 a barrel on Friday, recouping all of the week's earlier losses.
London Brent crude rose 85 cents to $105.73.
Oil rose even as the dollar rallied today, joining buoyant equity and credit markets in shrugging off last week's soft US job data as investors took heart from central bank efforts to alleviate the global credit crunch.
"The key driver will be continued financial investors inflows into oil," said Societe Generale in a report, reasserting its $107.50 forecast for average oil prices in the second quarter.
"On balance, we take comfort in the fact that front-month crude prices appear to have found a floor at $100, and appear to be trending sideways."
Analysts said fundamentals also supported prices.
"The biggest surprises could be on the supply side. Non-OPEC supply is just not going up this year," Paul Horsnell, oil analyst at Barclays Capital in London.
As oil prices resume climbing toward their March 17th record high of $111.80, OPEC has continued to see the market as well-supplied.
"Oil supply to the market is enough and high oil prices are not due to a shortage of crude but rather it is because of the decrease in the dollar's value, shortage of refinery capacity and some political tensions in the world," OPEC Secretary-General Abdullah al-Badri was quoted as saying by Iran's official IRNA news agency.
"OPEC is not under any pressure... to raise crude output," Mr Badri told reporters in Tehran, IRNA reported, adding that there were no plans to hold an emergency meeting ahead of its next planned gathering in September.