Oil prices gained for a fourth straight day on Thursday, as investors worried about supply shortages amid US President Donald Trump's push for a swift resolution to the war in Ukraine and threats of tariffs on countries buying Russian oil.
Brent crude futures for September delivery, which are set to expire on Thursday, rose 27 cents, or 0.4%, to $73.51 a barrel by 0028 GMT, while US West Texas Intermediate crude for September gained 37 cents, or 0.5%, to $70.37 a barrel.
Both benchmarks settled 1% higher on Wednesday.
The more active Brent October contract was up 29 cents, or 0.4%, at $72.76.
"Concerns that secondary tariffs on countries importing Russian crude will tighten supplies continue to drive buying interest," said Toshitaka Tazawa, an analyst at Fujitomi Securities.
On Tuesday, Trump said he would start imposing measures on Russia, including 100% secondary tariffs on its trading partners, if it did not make progress on ending the war within 10-12 days, moving up an earlier 50-day deadline.
Trump said on Wednesday the United States is still negotiating with India on trade after announcing earlier in the day the US will impose a 25% tariff on goods imported from the country starting on Friday.
The US has also warned China, the largest buyer of Russian oil, that it could face huge tariffs if it kept buying.
On Wednesday, the US Treasury Department announced fresh sanctions on over 115 Iran-linked individuals, entities and vessels, in a sign the Trump administration is doubling down on its "maximum pressure" campaign after bombing Tehran's key nuclear sites in June. China is the top buyer of Iran's oil.
Meanwhile, US crude oil inventories rose by 7.7 million barrels in the week ending July 25 to 426.7 million barrels, driven by lower exports, the Energy Information Administration said on Wednesday. Analysts had expected a 1.3 million-barrel draw.
Gasoline stocks fell by 2.7 million barrels to 228.4 million barrels, far exceeding forecasts for a 600,000-barrel draw.
"US inventory data showed a larger-than-expected build in crude stocks, but a bigger-than-expected gasoline draw supported the view of strong driving season demand, resulting in a neutral impact on oil market," Fujitomi Securities' Tazawa said.
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