SINGAPORE: Brent crude held above $118 on Wednesday as supply concerns in the Middle East sparked by tensions over Iran and disruptions in South Sudan trumped a worrisome outlook for Greece, which could face a messy bankruptcy.
Investors are concerned about oil supplies as turmoil accelerated in Syria and Iran's dispute with the West over Tehran's nuclear program persisted.
Oil markets also face fresh supply worries from South Sudan, after Sudan seized another 2.4 million barrels of crude over a continued dispute on payment issues.
Front-month April Brent crude futures were up 70 cents to $118.05 a barrel at 0310 GMT, tracking gains made on the March crude which settled at $118.28 on Tuesday, reversing losses from earlier in the day.
"The oil market continues to be caught between deterioration in the global economy and supply issues, including actual supply disruptions in Sudan," said Jeremy Friesen, a commodity strategist at Societe Generale.
"I don't think it's realistic to expect that risks in the Middle East will disappear."
Oil output was also halted from Yemen's Masila oilfield, the country's largest, after workers went on strike over pay issues.
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