Oil prices increased today by 43 cents to $69.88 a barrel.
July Brent crude on London's ICE futures exchange rose 43 cents to $70.10 a barrel.
"The concerns that drove prices down were premature, particularly in the US market," said energy analyst Victor Shum of Purvin & Gertz. "The market is rebounding and some participants are taking advantage of the lowered prices to get back into it."
Traders remain concerned about how the West's standoff with Iran will affect that nation's oil exports as well as supply disruptions in Nigeria and the Gulf of Mexico during hurricane season.
OPEC acting Secretary-General Mohammed Barkindo said today that geopolitical tensions were causing up to a $15-a-barrel premium on crude prices, and urged governments of both producing and consuming countries to ease the tensions.
"Remove the impediment of geopolitical concerns, tensions, and the resulting speculation and the oil price will find its rightful place in the market," he said at a meeting in Norway between the Organization of Petroleum Exporting Countries and the International Energy Agency.
Shum noted that the peak driving season in the United States was approaching, beginning with the upcoming Memorial Day holiday, and that would gauge market demand.
Gasoline futures rose half a cent to $2.0201 a gallon, while heating oil futures rose a cent and a half to $1.9660 a gallon.
US government data released on Wednesday showed the domestic supply of gasoline rose for the third straight week amid stagnating demand. The Department of Energy said domestic gasoline supplies grew by 1.3 million barrels last week to 206.4 million barrels.
While that is 3.5 percent below year-ago levels, it comes at a time when gasoline consumption appears to be flattening out as a result of high prices.