Brent North Sea crude for January delivery gained seven cents $77.53.
Both contracts had closed firmed yesterday on the back of the weaker US dollar which had boosted investor appetite for riskier but higher-yielding assets such as oil.
"The soft US dollar and firmer equity markets supported oil prices," analysts from the Commonwealth Bank of Australia said in a report.
For dollar-priced crude, a weaker US currency means it is now cheaper for holders of foreign units to buy the commodity.
The dollar came under fresh selling pressure in reaction to comments over the weekend by Federal Reserve Bank of St Louis chief James Bullard that he would prefer to keep the central bank's asset-buying program active beyond its current cut-off date.
An extension of the program, widely considered a negative factor for the US currency, would give more flexibility to US policymakers, he said.
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