Oil held near two-week highs today, bolstered by expectations of another cut in US interest rates to revive economic growth in top consumer the United States.
The view that OPEC will leave production levels unchanged when it meets in Vienna later this week was also supportive, but an anticipated rise in US crude oil stocks in government data due later today could put prices under pressure.
US crude rose 53 cents to $92.17 a barrel by 10.30am. London Brent crude was up 35 cents to $92.35 a barrel.
The US Federal Reserve is expected to cut interest rates for the second time in just over a week to help the US economy cope with a housing slump and credit troubles in global financial markets.
The severity of the credit market crisis was highlighted again today when Swiss bank UBS reported $4 billion in new write-downs related to bad mortgage loans.
"Once the Fed decision is out of the way, most financial and commodity markets could again come under pressure," said Edward Meir, analyst at broker MF Global in a research report, citing uncertainty over the health of the US economy.
US economic data released yesterday was mixed, with stronger-than-expected orders for US-made durable goods in December countering a record fall in house prices in November.
Oil hit a record of $100.09 a barrel on January 3rd, but has dropped back since then as fears of a US slowdown have intensified.
Goldman Sachs remains positive on oil's fundamental supply/demand picture despite concerns over the US economy.