Brent crude oil held steady at two-year highs in midday trade on further buying amid continuing tensions over Iraq and a squeeze on heating oil, analysts said.
At 11.55 a.m., March-dated Brent crude futures gained 19 cents on the day, to reach $32.53 per barrel, after hitting fresh 2 year highs of $32.70 in early morning trade.
"Brent is higher this morning and there's plenty of buying, despite NATO allies' efforts to slow things down," said Mr Peter Gignoux, head of commodities research at Schroder Salomon Smith Barney.
Prices have gained further support today on a squeeze in heating oil, analysts said.
"Crude oil prices are being supported by very strong product prices. There are fears of distillate shortages in the USA and as a result heating oil prices are exceptionally strong," said Barclays Capital analysts in a research note.
US distillate heating fuel inventories hit a 20-month low of 112 million barrels according to US Department of Energy data released last week.
AFP