Oil prices rose by as much as $1 per barrel on Thursday after dropping below key technical support levels in the previous session, as an energy standoff between Europe and Russia focused investor minds on how tight fuel supply may become.
Brent crude futures gained 63 cents, or 0.7%, to $88.63 per barrel by 0628 GMT after closing at their lowest since early February in the previous session. U.S. crude futures were up 70 cents, or 0.9%, at $82.64 per barrel.
The potential impact of any deal or reinstating an accord between the West and Iran on Tehran's nuclear programme would also be significant, they noted. An agreement would see sanctions on Iranian oil exports lifted.
The British government is expected to announce dozens of new North Sea oil and gas exploration licences in an effort to boost domestic production, two sources familiar with the government's discussions told Reuters.
Meanwhile a number of central banks around the world are expected to begin a new round of interest rate hikes to fight inflation.
The European Central Bank is expected to raise interest rates sharply when it meets later on Thursday. A U.S. Federal Reserve meeting follows on Sept. 21.
