Oil pared losses on Tuesday to trade above $61 a barrel, after Saudi Arabia said oil demand was picking up and in response to positive U.S. consumer confidence data.
U.S. crude oil for July delivery was down 7 cents from Friday's close at $61.60 a barrel by 1413 GMT. It earlier touched a session low of $59.53.
London Brent crude was up 49 cents from Monday's close, at $60.70.
There was no settlement price for U.S. crude oil on Monday as NYMEX was closed for the U.S. Memorial Day holiday.
Oil has nearly doubled in price since December, buoyed partly by expectations of increased demand if the world economy recovers.
U.S. crude has reached its highest levels in six months.
Saudi Arabian Oil Minister Ali al-Naimi said there was already a slight "uptick" in fuel consumption.
Naimi, speaking to journalists ahead of Thursday's OPEC meeting in Vienna, also said he hoped oil prices would hit $75 a barrel between the third and fourth quarters of this year.
A key indicator of U.S. consumer confidence provided further evidence of a potential economic recovery.
The Conference Board's consumer confidence index rose in May to 54.9, when economists polled by Reuters had predicted 42.0 for the May index.
NO CHANGE
Expectations are that OPEC will not change its output targets when it meets to review them this week.
The al-Hayat newspaper has quoted Naimi as saying world stocks were still too high for OPEC to consider lifting output.
The Organization of the Petroleum Exporting Countries has already pledged to curb output by 4.2 million barrels per day since September.
Saudi Arabia has also warned oil prices could spike up to the $150 record peak reached in 2008 within three years as it joined other energy leaders in calling for more investment to boost oil output over the long term.
