Oil rose above $67 per barrel on Wednesday, buoyed by a fall in the dollar and higher share prices, but gains were limited by an expected increases in U.S. oil inventories.
U.S. crude futures were up 57 cents to $67.28 a barrel by 1300 GMT, after hitting a high of $67.99. London Brent crude gained 46 cents to $65.96 a barrel.
Harry Tchilinguirian, senior oil analyst at BNP Paribas, said a slight rise in stock markets added some strength to oil
European bourses are positive this morning. This may keep oil around current levels until we get the fundamental data, he said.
Traders said a weaker dollar against major currencies on month-end and quarter-end buying, was also supporting the oil market.
The U.S. government's Energy Information Administration (EIA) will release its oil inventories report at 1430 GMT. Analysts forecast it will show modest increases in crude and oil product inventories as demand remained weak.
Ahead of the EIA data, industry group the American Petroleum Institute reported late on Tuesday builds in crude and distillate stocks, while showing a drop in gasoline inventories.
Political tensions related to Iran, OPEC's number two producer, also supported the market, traders said, ahead of a meeting between diplomats from the five permanent U.N. Security Council members as well as Germany and Iran's nuclear negotiator.
(Reporting by Ikuko Kurahone)