Crude oil prices have jumped by more than a dollar on fears that conflict between Russia and Georgia could disrupt supplies in the region.
US light, sweet crude was up $1.16 at $116.36 a barrel, while London's Brent crude gained $1.45 to $114.78 after prices had fallen on Friday.
Georgia is not an oil producer but the country is a key transit point for crude and gas exports.
Oil prices have fallen in recent weeks after hitting a record $147.27 in July.
Pipeline unscathed
BP has a 30% stake in the Baku-Tbilisi-Ceyhan oil pipeline, the world's second largest, that runs from Azerbaijan through TNK-BP chief leaves Russia ...
Moscow says German plan for Georgia is "helpful" ...
Georgian president meets German Chancellor in Berlin ... southern Georgia into Turkey.
It can transport up to 1.2 million barrels of oil a day.
A BP spokesman said the pipeline had not been damaged by the fighting.
Transporting oil through the region is designed to make the West less dependent on supplies from Russia.
"The military conflict in Georgia is the key factor in pushing up oil prices this morning. So much has happened so quickly since we first heard of Russia's attack last week," said David Moore, an analyst at the Commonwealth Bank of Australia in Sydney
Criticism
The US has strongly criticised Russian military action against Georgia as fighting continued over the breakaway province of South Ossetia.
President George W Bush told US TV he had frank discussions with Russian prime minister Vladimir Putin when the pair met at the Olympics in Beijing, calling Russia's actions "disproportionate".
Georgia said Russian planes had bombed targets near its capital, despite Tbilisi declaring a ceasefire.
And Moscow accused Georgian forces of firing on Russian positions in the South Ossetian capital, Tskhinvali.
(BBC)
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