Oil rose above $67 a barrel on Tuesday, tracking gains on global stock markets ahead of key U.S. crude inventory data.
U.S. crude for September delivery was up 61 cents at $67.36 a barrel by 1430 GMT (10:30 a.m. EDT). The contract settled 76 cents lower at $66.75 on Monday, off a two-week low of $65.23.
London Brent crude for October was up 2 cents at $70.56.
U.S. and European stock market indices recovered some of the previous day's losses as better-than-expected corporate results offset economic uncertainty after mixed U.S. housing and producer price data.
The previous session's sell-off in oil and equities markets was prompted by concerns over the pace of global recovery.
Oil investors turned their focus to inventory data.
The release of weekly data from the American Petroleum Institute at 2030 GMT (4:30 p.m. EDT) will be followed by U.S. government figures from the Energy Information Agency on Wednesday with analysts expecting more signs of weak U.S. demand.
A preliminary Reuters poll of analysts predicted crude stocks rose by 1 million barrels, as higher imports offset a slight increase in refinery activity.
Distillate stocks were seen up 400,000 barrels and gasoline stocks down 1.4 million barrels.
Oil investors continued to monitor the growth of Hurricane Bill, the first of this year's season, which might disrupt Gulf of Mexico oil and gas production.
Hurricane Bill was expected to strengthen to a major category 3 storm by Wednesday, while the remnants of Tropical Storm Ana dissipated without threatening the U.S. Gulf oil patch, the U.S. National Hurricane Center said.
The U.S. Gulf produces a quarter of the nation's oil and 15 percent of its natural gas.
(Editing by William Hardy)