Oil hovered near $70 in London amid mixed signals for future prices.
At 9.32am, London's benchmark Brent crude contracts for September delivery were up 28 cents at $70.05 per barrel.
Although possible hurricanes in the Gulf of Mexico region could squeeze supply, the threat of more risk aversion amid nervous stock markets remained.
So far this month, London's benchmark Brent contract has shed around 9 per cent because traders fled from riskier markets, like oil, into safe haven assets. Also, a sell-off to cover losses elsewhere exacerbated the fall.
But potential hurricanes have helped to underpin oil's price. All eyes are now on Hurricane Dean to see if it crosses the Gulf of Mexico, where more than 30 per cent of total US oil output is pumped.