On Tuesday, Brent crude futures rose $3.04, or 3.1 percent, to $101.01 by 0843 GMT.
Concerns regarding potential supply disruptions following the Russian war in Ukraine and associated sanctions have overshadowed talk of a coordinated global drawdown of crude stocks to calm markets.
The benchmark touched a seven-year high of $105.79 following the start of the Russian invasion of Ukraine last week.
And US West Texas Intermediate crude futures for April delivery rose $2.56, or 2.67 percent, to $98.28. And US crude contracts had touched a high level of $99.10 a barrel the previous day, and recorded, upon settlement, an increase of more than 4 percent.
A large Russian military convoy approached Kyiv on Tuesday, following ceasefire talks between Russia and Ukraine ended without a breakthrough.
Russia’s isolation worsened with Maersk, the world’s largest shipping company, announcing today that it would halt container shipping to and from Russia.
“The fragile situation in Ukraine, financial and energy sanctions once morest Russia will keep the energy crisis festering and oil will rise well above $100 a barrel in the near term, and even more if the conflict escalates further,” Louise Dixon, senior oil market analyst at Rystad Energy wrote in a note.
Major oil and gas companies, such as BP and Shell, have announced plans to exit Russian operations and joint ventures.
Buyers of Russian oil are struggling with payments and availability of ships with sanctions in place.
However, market sentiment was supported by the US and its allies’ search for a coordinated drawdown of crude stocks to ease supply disruptions. And the media reported that this withdrawal may reach between 60 and 70 million barrels.
“This potential drawdown is limiting higher oil prices for the time being,” analysts at Commonwealth Bank of Australia wrote in a note.
The International Energy Agency is preparing to hold an extraordinary ministerial meeting on Tuesday to discuss the role that its members can play in stabilizing oil markets.
Russia, which describes its actions in Ukraine as a “special operation”, exports between four and five million barrels per day of crude oil and between two and three million barrels per day of refined products.
The Organization of the Petroleum Exporting Countries (OPEC) and other producers, including Russia, will also meet tomorrow, Wednesday, when they are expected to maintain a planned gradual increase in supplies during next April.