The oil price jumped back above the $100-a-barrel mark yesterday.
The move followed Saudi Arabia floating the idea of an Opec+ output cut to support prices.
Global benchmark Brent crude finished Tuesday up $3.74 at $100.22 a barrel - a rise of nearly 4%. It was the highest price since August 2.
Brent futures were marginally ahead this morning at $100.29 a barrel.
The oil price had surged well above $120 a barrel earlier this year following Russia's invasion of Ukraine, but a variety of factors pushed crude prices lower in recent weeks.
These included the prospect of a resumption of Iranian crude exports, recession fears and worries of a Chinese economic slowdown.
Brent futures were as low as $92 a barrel earlier this month.
Production cuts
But Reuters says that the potential Opec+ production cuts mooted this week by Saudi Arabia may not be imminent.
It is thought an output reduction at the upcoming Opec+ meeting on September 5 would be too soon.
But sources say it could be necessary later should a possible revival of Tehran's 2015 nuclear deal bring additional volumes to the oil market.
A senior US official said this week that Iran had dropped some of its main demands on resurrecting a deal to rein in its nuclear programme.
Should sanctions be lifted, it is thought Iran would need around a year and a half to reach its full production capacity of 4million barrels per day (bpd).
But more immediately it could start selling some of its 150million-plus barrels of oil in storage, sources said.
Opec+ decided to increase output by 648,000 bpd in each of July and August as it fully unwinds nearly 10million bpd of cuts implemented in May 2020 to counter the Covid-19 pandemic.
Quotas raised
The group agreed earlier this month to raise production quotas by another 100,000 bpd in September, under pressure from major consumers including the US to cool prices.
But some members have been underproducing as sanctions and low investments in the energy sector left most unable to meet their production quotas.
Meanwhile, gas prices surged to new record highs earlier this week as Russia prepared to halt supplies through a crucial pipeline to Europe.
Prices for wholesale gas for the coming winter in Britain rose to as much as 719p per therm.