Oil is hovering above $101 a barrel, as investors show skepticism on the Venezuelan peace proposal to calm crisis in Libya.

US crude futures for April were up 4¢ to $101.95 a barrel, and Brent crude for April increased 11¢ to $114.90 a barrel by 11.46pm ET, reports Reuters.

Prices also steadied, supported by payroll data from the US that is likely to show recovery in the world’s largest energy user.

Venezuelan president Hugo Chavez told Reuters that Libya’s Muammar Gaddafi had agreed to proposals for an international panel to negotiate an end to the conflicts.

Open interest in US crude futures has been increasing as investors prepare for further supply shocks, after cuts in Libyan output by 700,000-750,000 barrels a day.