Brent crude was trading at $122.34 in early trading in London supported by expectations that a rate rise in Europe will boost the euro and make dollar-priced oil cheaper.
A stronger euro would make dollar-priced crude more attractive, lifting up demand and prices.
"The tone of the ECB on further rate hikes may be supportive of the euro and that will be supportive of oil prices," Serene Lim, oil and gas analyst for ANZ bank in Singapore, told AFP.
Ongoing unrest in North Africa and the Middle East continued to buoy crude prices, with traders shrugging off fears of a slowdown in global demand after China raised interest rates for the fourth time since October.
"I expect Brent to remain on the uptrend. Technically, it is possible for Brent to go to $125 a barrel within this week." said Ken Hasegawa, commodity derivatives manager at Japan's Newedge brokerage
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