Oil rose to near $87 a barrel today despite economic growth in China, the world's second-largest crude consumer, slowing in the second quarter to a three-year low.
The decline was in line with expectations.
Benchmark oil for August delivery was up 83 cents at $86.91 a barrel in New York after rising 27 cents to settle at $86.08 yesterday.
In London, Brent crude for August delivery was up 90 cents at $101.97 a barrel.
China said its gross domestic product expanded 7.6% in the April to June period from a year earlier, the lowest since 2009. China also reported that retail sales and factory output growth slowed in June.
Crude has fallen from $106 in May amid signs of slowing economic growth in the US, Europe and China.
Some analysts expect global policymakers to continue to ease monetary policy and boost fiscal spending, which should spur economic growth and oil demand.
Fresh US sanctions against Iran aimed at stifling its nuclear programme also helped support oil prices. The new sanctions announced yesterday were aimed at companies and people affiliated with Iran's defence ministry.
Previous sanctions were meant to curtail its ability to export oil.
Earlier this year, European refineries stopped buying Iranian oil, and Iran's banks were blocked from doing business with much of the world.
The US and other Western nations say Iran is building a nuclear weapon, which Iran denies. Its leaders have threatened to block a key shipping channel out of the Persian Gulf if the sanctions continue, a move that could slow down or even halt shipments of about 20% of global oil supply.
