Brent oil futures bounced off the lowest level in more than a year on Tuesday, while West Texas Intermediate prices also firmed ahead of the release of U.S. weekly supply data.
On the ICE Futures Exchange in London, Brent oil for October delivery inched up 0.3%, or 30 cents, to trade at $101.90 a barrel during European morning hours.
A day earlier, London-traded Brent prices fell to $101.11 a barrel, the lowest since June 26, 2013, as concern eased over global conflicts from Ukraine to Libya and Iraq.
Ukrainian Foreign Minister Pavlo Klimkin met Russian counterpart Sergei Lavrov for more than five hours of talks in Berlin on Monday, in hopes of reaching a ceasefire or a political solution to the four-month old conflict in eastern Ukraine.
Oil traders have monitored tensions between Ukraine and Russia for months, amid concerns that Western sanctions against Russia could halt the country's oil exports.
Meanwhile, Libya's oil production increased to 535,000 barrels a day on Sunday from 400,000 last week due to higher output at the southwestern El Sharara, El Feel fields, a spokesman for the National Oil Corporation said.
In Iraq, government forces and Kurdish troops recaptured the nation’s largest dam in Mosul from Islamic State militants, following increased U.S. airstrikes in northern Iraq during the weekend.
Elsewhere, on the New York Mercantile Exchange, crude oil for delivery in October rose 0.58%, or 55 cents, to trade at $94.30 a barrel.
New York-traded oil futures hit $93.42 a barrel on Monday, the weakest level since January 15.
Traders awaited key U.S. weekly supply data to gauge the strength of oil demand from the world’s largest consumer.
The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles fell by 1.5 million barrels in the week ended August 22.
Apart from geopolitics, investors were looking ahead to U.S. inflation data later in the day for further indications on the possible future path of monetary policy.
Later in the week, market players will be keeping a close eye on Wednesday's release of minutes from the Federal Reserve's July policy meeting as well as comments from the Fed's three-day conference in Jackson Hole, Wyoming, which starts on Thursday.
The spotlight will be on Fed Chair Janet Yellen, who will speak on Friday in her first appearance at Jackson Hole as head of the U.S. central bank.