The effect of oxygen on the growth of single-walled carbon nanotubes was studied with Ni–Co alloy powder as catalyst under helium atmosphere of 500 Torr by electric arc discharge. The oxygen included in nickel or (and) cobalt oxides was added in catalyst. The content of oxygen in atmosphere was controlled by changing vacuum degree inside furnace before inputting buffer gas. The examinations of TEM and Raman scattering showed that oxygen in metal oxide as catalyst promotes the nucleation of SWCNT by taking effect on the metal catalyst particles. However, O2 in atmosphere has the role of oxidizing amorphous particles along with nanotubes. When its molar proportion is higher than 0.22 ppm (Parts per million), the carbon nanotubes produced are oxidized and their purity decreases. The diameter of single-walled carbon nanotube obtained under different condition has a narrow distribution around 1.28 nm.