Brent crude gained 38 cents to $118.35 a barrel, as investors remained cautious ahead of a Spanish debt auction with fears of euro zone crisis.

Spain will sell two-year and ten-year bonds following a successful auction of 12 and 18-month Spanish debt bonds earlier this week.

The International Monetary Fund appeared to secure $320m in a drive for new funds in an effort to cushion the impact of a potential European debt crisis, reports Reuters.

US crude fell five cents to $102.62 a barrel, as crude stocks rose 3.86 million barrels to nearly 22.8 million in the week to 13 April, reports Reuters.