Traders are also keeping watch on ongoing unrest in the Middle East and North Africa. Libya remains locked in a stalemate, with reports that cargoes of oil are beginning to trickle out of the country, doing little to convince investors that its full 1.3 million barrels a day of exports will return to the market anytime soon.
Meanwhile, the situation in Syria is worsening. Hundreds of members of Syria's ruling party have quit over the use of force against protesters, and fighting has been reported between soldiers and elite troops, indicating growing cracks among loyalists to the Assad regime.
"An escalation of violence in Syria holds potential for shaving off approximately 350,000 b/d of crude production," said JBC Energy in a note.
However, the majority of the crude exports are heavy and sour Souedie crude, much more easily replaceable than the high quality, light, sweet crude found in Libya, it added.
--Sarah Kent contributed to this report.