Oil climbed away from $60 on Tuesday, drawing strength from a rise in Asian and European stocks after five days of losses, Reuters reports.
Crude slid more than two percent the previous session after a slide on equities markets raised concerns that world economic growth could slow and fuel demand falter.
U.S. crude gained 37 cents to $60.44 a barrel by 0942 GMT, having dropped $1.57 on Monday to touch a two-week low of $59.55. London Brent crude was up 55 cents to $61.09.
Share indexes across Asia rose between 1 and 2 percent and the FTSEurofirst 300 of leading European shares was up 0.5 percent.
But some analysts said the volatility in global markets over the past week -- marked by a sell-off in stocks and short-covering in the yen -- may not have run its full course.
Oil has been relatively immune and chalked up four consecutive days of gains last week, lifted by a robust U.S. gasoline market and OPEC member Iran's refusal to halt uranium enrichment, running a risk of tougher United Nations sanctions.
Commonwealth Bank of Australia said oil had finally succumbed to concerns over weaker equities markets and the implications for the economic outlook.
"A softening in international economic growth would also take a toll on oil demand," the bank added.
Technical analysts at Barclays Capital said there was formidable support near $57, however.
Top consumer the United States will release weekly fuel stocks data on Wednesday. Analysts polled by Reuters expect a 1.7 million-barrel decline in gasoline inventories.
Despite the recent retreat, oil prices remain near their highest in two months and well above their 20-month low in mid-January of under $50 a barrel.
(Reuters, 06/03/2007)