Oil edged up above $60 this morning after sliding more than 2 per cent a day ago as Asian equities and the dollar rose.
US crude gained 17 cents to $60.24 a barrel by earlier this morning, having dropped $1.57 yesterday to touch a two-week low of $59.55. London Brent crude was up 20 cents to $60.74.
Asian shares rebounded, with Tokyo's Nikkei average snapping a five-day losing run to close 1.2 per cent higher, and Hong Kong's Hang Seng index rose 2.1 per cent, offering some hope that the worst of the declines may have run its course.
The dollar rebounded against the yen, up more than one yen from yesterday's three-month low as the share price recovery helped limit a week-long sell-off in risky assets that has been worsened by the surge in the Japanese currency.
Oil markets initially proved immune to most of last week's stock market gyrations, rising every day but Friday, as a tightening US supply picture and the fear of disruption to Iran's exports countered the turmoil rocking other markets.
Oil traders are watching weekly oil data from the US government due tomorrow as they expect a drop in gasoline stocks may provide support to the market.