Supply jitters outweighed reports of 'easing' tensions between Iran and the EU which, in part, pushed prices lower at yesterday's close.

Oil was lifted by news of "ongoing refinery issues in the States, the strength in gasoline (prices), strong gasoline demand and inventory levels looking rather worrying low," said Barclays Capital analyst, Kevin Norrish. Some of the refinery jitters stem from Valero's announcement that it plans to extend the maintenance period at its 210,000 bpd refinery in Texas by another week.

At 9.18 am, London Brent crude for June delivery was up 28 cents at 67.93 usd, after closing at 67.65 usd yesterday. Meanwhile, New York crude for June delivery was up 32 cents at 65.38 usd a barrel, having closed at 65.06 usd.

Norrish added, with a tighter supply situation, "a piece of rather inconsequential news about Iran and the EU being polite to each other," was not enough to justify yesterday's sell-off.

Yesterday, prices fell after Iranian negotiator Ali Larijani said discussions with EU foreign policy head Javier Solana had made progress towards a "united view" on ending the crisis over Iran's uranium enrichment programme.