Oil edged higher today amid expectations gasoline inventories will decline further in the United States just ahead of peak summer demand.
Tightening fuel supplies countered worries of a slowdown in the global economy sparked by troubles in the US housing sector and China's move to raise interest rates in an attempt to cool growth.
Prices have recovered from a six-week low of $56.17 a barrel for US crude hit on Friday.
US crude for May delivery, the most actively traded contract, rose 19 cents to $59.89, with the expiring April contract up 23 cents at $56.82.
London Brent climbed 20 cents to $60.72 a barrel. US gasoline was trading at $1.9440, off a seven-month high of $1.9740 hit on Monday.
US gasoline stocks have dropped about 6 per cent since early February and were expected to decline further as maintenance and mechanical troubles cut refinery production by almost 15 per cent.
