Oil climbed more than a dollar today to well above $59 a barrel as traders bet on lasting price strength amid anxiety over Iran.
US March crude oil futures rose $1.13 to $59.51 a barrel by 12.26pm Irish time, while London April Brent crude climbed $1.21 to $60.
"I think over the long term prices will remain firm," said Damien Cox, analyst at John Hall Associates. "I don't expect prices to move much from $60 to $65."
"Geopolitical tension is never far below the surface. . . . The situation with Iran has not run its course and it is far from clear how it will turn out," he added.
US prices had fallen by more than $10, or around 14 per cent, since the start of the month, but they began to rally yesterday.
Buying today gained momentum as dealers were reluctant to cut positions ahead of a long weekend in the United States to mark Presidents' Day.