Oil edged higher in early afternoon trade, breaking through $63, as news of escalating tensions in the Middle East added to existing worries over declining gasoline stocks in the US.
At 1.47pm, London Brent crude for May delivery was up 90 cents at 63.39 usd a barrel, after adding $1.74 to settle at $62.51 yesterday. New York crude for May delivery was up 73 cents at $62.41 a barrel.
Analysts said oil was benefiting from news that some 15 sailors from a British warship were seized earlier today by Iranian naval vessels in the Persian Gulf.
The abduction of the British servicemen comes as the United Nations Security Council prepares to vote on new sanctions aimed at forcing Tehran to curb its nuclear programme.
Iran aside, oil is still benefiting from data out Wednesday from the US Energy Information Agency, which showed US gasoline stocks fell for the sixth successive session last week, by a larger-than-expected 3.4 million barrels.
Crude demand is expected to surge in the weeks ahead as refiners ramp up gasoline production in a bid to build up stocks ahead of the summer driving season.