Traders also eyed unrest in the Middle East and Nigeria, analysts said.

New York's main oil futures contract, light sweet crude for delivery in July, rose 35 cents to close at 68.00 dollars per barrel.

In London, Brent North Sea crude for August delivery climbed 51 cents to settle at 71.47 dollars per barrel.

Oil prices this week have gained five percent in New York and four percent in London.

"Market participants were pausing ahead of the weekend, with many pocketing profits," said Sucden analyst Michael Davies in London.

"However, the market remains well supported as US gasoline (petrol) stocks are still running approximately six percent below last year's levels."

Prices had risen on Monday after a heavy sell-off the previous week, partly sparked by fears that rising global interest rates could crimp global economic growth -- and oil demand.

Crude futures began falling on Tuesday as the market awaited the weekly US snapshot on energy reserves, expecting gasoline supplies had risen strongly.

However, oil prices surged higher after the US Department of Energy said gasoline inventories were unchanged at 201.5 million barrels in the week ended June 8, breaking a five-week streak of gains and remaining below levels at this time last year.

The weak US gasoline data has captured traders' attention because of strong domestic demand expected during the summer vacation driving season.

Prices also found support in a decline in US refinery utilization for the second consecutive week.