New York's main contract, light sweet crude for delivery in December,

gained eight cents to $95.60 per barrel.

Brent North Sea crude for December delivery rose 22 cents to $114.78.

Crude was supported by news that Greece was close to a breakthrough in forming a new government, Barclays said in a report.

"Oil prices gain ground in early trade today as positive steps are taken in Greece towards resolving its debt crisis," it stated.

Greek government spokesman Elias Mossialos said in a statement that "there was positive convergence" on the debt-laden country's search for a new premier and government after marathon talks.

Outgoing Greek Prime Minister George Papandreou also said he would host a cabinet meeting at midday (1000 GMT) as global pressure mounted for a debt deal with a feared default weeks away.

Meanwhile, Iranian accusations that Israel is seeking world support for a military strike on its nuclear facilities and US warnings of fresh Islamist attacks in Nigeria also propped up prices, Barclays said in its report.

"Geopolitical headline risks for the oil market grew as violence intensified in the north-eastern region of Nigeria over the weekend, while Israeli-Iranian tensions are on the rise too," it said.

Iran accused Israel and the US on Monday of seeking global support for a military attack on its nuclear facilities, causing a spike in tensions in the oil-producing Middle East and North Africa (MENA) region.

Also on Monday, the US warned of fresh attacks following a wave of deadly blasts claimed by Islamist sect Boko Haram which killed 150 people in the country's northeast on Friday.