Oil prices steady as market eyes Nigeria

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"There's a broader review, in the market, of whether the increase in Saudi output will be sufficient to meet the ongoing demand for oil, particularly from developing economies," Moore said.

In the U.S., Democratic members of Congress said Monday they intend to tighten investment restrictions on pension funds, investment banks and other large investors that they blame for driving up fuel prices. Investors have increasingly pumped money into contracts for oil and other commodities as a hedge against inflation when the dollar falls.

Analysts said the oil market was also supported by tight fundamentals.

"It's not just speculators or just fundamentals," Shum said. "Global oil markets are at this time structurally tight, meaning demand keeps growing and supply is playing catch-up with demand. That has attracted speculators into oil," Shum said.

In other Nymex trading, heating oil futures added 1.36 cents to $3.81 a gallon while gasoline prices rose 0.36 cent to $3.4587 a gallon. Natural gas futures added 0.8 cent to $13.211 per 1,000 cubic feet.

Brent crude futures rose 1 cent to $135.92 a barrel on the ICE Futures exchange in London.

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