“Brent crude oil held near $111 a barrel on Monday as violent protests in Egypt raised new worries over the stability of the Middle East, reigniting supply concerns.
Hopes Greece could avoid bankruptcy also brightened the outlook for oil demand from Europe as euro zone finance ministers met to try to hammer out a deal to get lenders to release emergency aid to Athens before its next debt repayments.
Brent crude slipped modestly but traded just above $111 a barrel, consolidating recent gains. Brent is up around 2 percent so far this month. U.S. crude oil futures also dipped to trade just shy of $88.
Supply worries remained uppermost in the minds of many investors, traders said, as political crisis deepened in Egypt over an expansion of the powers of President Mohamed Mursi. The euro strengthened, taking heart from signs that euro zone ministers could thrash out a deal to allow emergency loans to Greece.
Euro zone finance ministers and the International Monetary Fund were meeting on Monday to try to unfreeze the second bailout package for Greece.
Investors also kept an eye on Washington, where the White House and Congress are set to resume budget talks this week.
They want to avoid a series of automatic tax hikes and spending cuts worth $600 billion set for January, which some fear could tip the world's biggest oil consumer into recession.
Lawmakers in both the Democratic and Republican parties have been trying to convince the public - and financial markets - that they are willing to compromise and can reach a deal before the end of the year.”