Brent crude rose by seven cents to $106.03 a barrel ahead of the European Central Bank (ECB) meet later today, where investors expect policy easing measures to be made.
Brent prices are also being supported by news that maintenance work in the UK North Sea will cut output in September.
US crude slipped by two cents to $88.89 a barrel after the Energy Information Administration reported a drop of 6.5 million barrels in domestic crude oil inventories last week.
The US Congress passed a new package of sanctions against Iran on Wednesday which aims to punish banks, insurance companies and shippers that help Tehran sell its oil, reports Reuters.
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