Oil steadied above $76 a barrel on Monday, supported by lingering supply concerns and stronger economic growth in top fuel consumer the United States.
U.S. crude eased 41 cents to $76.61 by 0832 GMT, trimming a gain on Friday of $2.07, or 2.76 percent.
London Brent slipped 36 cents to $75.90. The North Sea benchmark reverted to a discount to U.S. crude last week on signs of lower crude stocks in Oklahoma.
Oil has rallied to within sight of last year's record high of $78.40, although the Organization of the Petroleum Exporting Countries has rebuffed calls from consumers for more crude.
OPEC's second-largest producer Iran said on Sunday it did not expect the exporter group to raise output at its next scheduled meeting on September 11.
"I do not imagine that, at its next regular annual meeting, OPEC would put the issue of changing its output level on the agenda," Oil Minister Kazem Vaziri-Hamaneh was quoted as saying.
Weekly U.S. inventory data last Wednesday showed a third straight decline in U.S. crude stocks and analysts said OPEC supply restraint will ensure further falls.
"There are substantial upside risks to prices this winter if OPEC does not expand output," Francisco Blanch of Merrill Lynch said in a report.
"Should the weather turn unseasonably cold in November or December, we believe oil prices could spike well above $80."
U.S. economic data showing gross domestic product grew at a 3.4 percent annual rate, the fastest since the first quarter of 2006, aided Friday's price gains.
(Reuters, 30/07/2007)