Oil prices closed higher for the third session in a row on Tuesday, as Western governments agreed to explore ways to put a ceiling on the price of Russian oil.
The international benchmark Brent crude contracts ended the trading session up $2.89, or 2.5%, to record at $117.58 a barrel.
US West Texas Intermediate crude contracts rose $2.19, or 2%, to close at $111.76 a barrel.
Both benchmarks consolidated gains from the previous session, which amounted to about 2%, after the Group of Seven rich countries pledged to intensify the current Western pressure on Russia from sanctions over its invasion of Ukraine.
The G7 leaders agreed to explore ways to ban the transfer of Russian oil being sold above a certain price, with the aim of reducing the revenue that Russia uses to fund its war in Ukraine.
The International Energy Agency said in its June report that Russia’s oil export revenue jumped in May despite a drop in volumes.
Analysts also said political turmoil in Ecuador and Libya could worsen supply shortages.
Markets are awaiting the latest weekly data on oil inventories in the United States. Two Archyde.com polls showed that US crude stocks are expected to have fallen over the past two weeks.
The US government’s report on oil inventories, which was due to be released last week, was delayed due to problems with computer systems. Data for the two weeks together will be published on Wednesday.