UD light crude was $1.43, or 2 per cent, higher at $72.21.
While Britain, China, France, Germany, Russia and Iran on Tuesday said they were determined to develop payment mechanisms to continue trading despite the sanctions by the United States, most analysts expect Washington's actions to knock between 1 million and 1.5 million barrels per day (bpd) of crude oil supplies out of markets.
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The panel comprised of ministers from OPEC and allied oil producers meeting on Sunday is unlikely to recommend a further increase in crude production from that agreed in June, five OPEC and non-OPEC sources told Reuters on Sunday. "As we produce more energy here at home, the USA needs markets for its products in order for our economy to continue to grow".
The american president seems to count on its saudi allies, the world's top exporter, to compensate for the drop in iranian exports.More news: Trump says he wants two-state solution for Mideast conflict
India's economy will grow at the fastest pace through 2040 and the country's oil demand growth will remain the fastest globally, in a market that will likely require investments of over $11 trillion.
The oil price is on course for its fifth consecutive quarterly increase, the longest stretch of gains since early 2007, when a six-quarter run led to a record high of $147.50 a barrel.
The market does not have the supply response for a potential disappearance of 2 million barrels a day in the fourth quarter, Jaeggi said in a speech at the S&P Global Platts Asia Pacific Petroleum Conference (APPEC) in Singapore.
Oil prices jumped more than 2 percent to a four-year high on Monday after Saudi Arabia and Russian Federation ruled out any immediate increase in production despite calls by U.S. President Donald Trump for action to raise global supply.
The market was "increasingly concerned about dwindling (U.S.) inventories", ANZ bank said on Monday. Over the weekend, the OPEC Joint Technical Committee ended without any commitment to increase production.
However, many industry executives maintained a cautious stance as OPEC may struggle to fully make up for the potential loss of Iranian barrels in the global market over the coming months, if not years.More news: Yale Law Professors Cancel Classes over Kavanaugh
Oil leaped after the world's top producers chose to maintain output during a meeting in Algeria at the weekend.
Algiers meeting is expected to extend the 2016 agreement to an additional period to maintain prices at the current level.
Trump said in a Tweet on Thursday, ahead of the meeting in Algiers.
"I do not influence prices", Saudi Energy Minister Khalid al-Falih told reporters on Sunday.
However, while much was made of the cartel's decision being a rejection of Trump insisting that output should increase in order to lower prices, it seemed instead to be in line with the perception that - again, contrary to fears of a tightening market due to production shortfalls in Iran and Venezuela - that all is fine with the global market.More news: Dallas Police Fire Officer Who Killed Botham Jean In His Own Home