West Texas Intermediate crude futures rose $1.05, or 1%, to $103.43 a barrel.
Brent futures rose 89 cents, or 0.9%, to $105.86 a barrel.
The gains follow news that the European Union is working on new sanctions against Russia for invading Ukraine that will target Moscow’s oil industry, according to Reuters.
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European Commission President Ursula von der Leyen is expected to spell out the plans on Wednesday, officials said.
On the supply side, U.S. crude and fuel stocks fell last week. According to American Petroleum Institute figures, crude stocks fell by 3.5 million barrels for the week, a figure that topped the expected 800,000-barrel drop in a Reuters poll.
U.S. government data on stockpiles is due later Wednesday.