Oil rose further today as a weakening dollar and souring consumer sentiment in the United States spurred buying in energy markets.
US light crude for May delivery rose 68 cents to $101.90 a barrel by 5.26am, extending a 36-cent gain in the previous session that ended a week of heavy sell-offs.
London Brent crude rose 49 cents to $101.09.
The dollar was little changed this morning, after falling in New York trade as investors seized on a rebound in gold and commodity prices as a cue to sell the US currency.
Renewed calm in financial markets also prompted players to sell the US currency and buy gold and oil, betting that the global economy will withstand an economic slowdown in the US.
Analysts said news that a worker strike in Gabon had halted 60,000 barrels of daily output from a Shell subsidiary in the West African nation also encouraged oil's gains.
The market is now shifting its focus to the US government's weekly report on crude oil inventories to be released at 14.30.
Oil analysts polled by Reuters expect this week's government data to show a third consecutive increase in weekly U.S. crude oil stocks, up 1.7 million barrels. Gasoline stocks were forecast to show a draw of 800,000 barrels, while distillate stock were seen to fall 1.7 million barrels.
Oil's modest gain on Tuesday snapped a three-day losing streak that saw oil prices tumble about 10 per cent in a week after striking a lifetime high of $111.80 on March 17th.
But some analysts said the recent correction in oil prices could continue due to a bleak US economic outlook, seasonal weakness in crude demand on the back of a heavy refinery maintenance schedule and weaker oil products demand as the winter season ends.