Oil has jumped nearly 14 percent since slipping as low as $110.53 a barrel on May 1, as investors seized on supply disruptions in the North Sea and Nigeria, as well as galloping demand for distillate fuels, a category that includes diesel fuel and heating oil.
Turkey said on Sunday it had launched air and artillery attacks against Kurdish separatist rebels in northern Iraq overnight after an insurgent strike on a military base.
Over the past week dozens of Turkish F-16 warplanes have launched bombing raids against suspected PKK positions deep inside northern Iraq.
In Lebanon, Hezbollah militants continued to battle the country's pro-government gunmen in Beirut on Sunday, extending the fighting to a fifth day in Lebanon's worst civil strife since the 1975-1990 civil war.
Although Lebanon is not an oil producer, civil unrest there has pushed up oil prices in the past, most recently in the summer of 2006 when Israel invaded Lebanon in an unsuccessful attempt to subdue Hezbollah.
An OPEC source said on Friday the group might consider boosting output before its next scheduled meeting in September should crude oil prices keep rising but Ecuador's and Qatar's oil ministers said there were no plans for an early meeting as soaring prices were out of OPEC's control.
