Oil prices rose Monday close to one-month highs but gains were capped by uncertainty about a possible global economic recovery, analysts said.
Brent North Sea crude for September delivery gained 52 cents to 70.84 dollars per barrel after earlier touching 71.28 dollars -- a level last seen on July 1.
New York's main futures contract, light sweet crude for September, was up 46 cents to 68.51 dollars, off a high of 68.99 dollars.
"There still remains much uncertainty over the timing and magnitude of any real economic recovery," said Sucden analyst Nimit Khamar.
"Hence, uncertainty and price swings in oil markets are likely to remain given that the oil markets are generally being dominated by macro(-economic) expectations."
In particular, a stronger-than-expected set of US corporate earnings has fuelled hopes that the world's largest economy is on the mend from a recession that started late last year.
"Technically, the market is in an up trend," Khamar added.
"In the week ahead, there are more corporate results including Exxon Mobil Corp, Chevron Corp and Honda Motor, while market participants will also be keenly awaiting US GDP (Gross Domestic Product) figures on Friday."
Petromatrix analyst Olivier Jakob said oil traders would take their lead from global stockmarkets this week.
"As we are still in the earnings season and have to face some key inputs on the US economy this week, the oil markets are still likely to be lead by equities," Jakob said.
Crude prices have risen about 10 dollars in New York over the past two weeks, energised by strong US corporate earnings and economic data suggesting the US and other key economies are starting to recover.
In Asia, strong Chinese second quarter growth of 7.9 percent has bolstered hopes that the region is also starting to shake off the US-led global slump.
After the United States, China is the second biggest energy consuming nation in the world.
"People concluded that Asia seems to have turned the corner -- now the US is also thought to be recovering," said Tony Nunan, a Tokyo-based manager with Mitsubishi Corp's international petroleum business unit.
However, Phil Flynn of PFG Best Research cautioned that the rise in oil prices was not supported by economic fundamentals.
"Oil has ignored bearish (negative) supply and demand fundamentals as the fundamentals of expectations of an improving economy seem to be a bit more exciting," Flynn said, adding: "After this pop, oil will fall hard."
