But US crude remained below the $70 per barrel-mark as investors balanced fears about political instability in Moscow with concerns about global growth, which is key to energy demand.
New York-traded West Texas Intermediate (WTI) settled up 21 cents, or 0.3%, at $69.37 per barrel, after an intraday low at $68.70. The US crude benchmark has experienced a volatile June but is poised to end the month up 2% after an 11% tumble in May.
London-traded Brent crude settled up 33 cents, or 0.5%, at $74.18, after a session low at $73.62. Like WTI, the global crude benchmark has swung through June, and could finish the month up 3% after May’s 9% drop.
Analysts said oil prices may stay defensive in the near-term, or at least be capped from breaking out into a major rally.
The oil market is also at a crossroads as the half-year mark approaches.
Inflation higher than desired by US and European authorities suggests economies on both sides of the Atlantic are chugging along just fine to keep oil demand alive.
But with central banks from the Fed to the BoE and ECB eyeing more rate hikes, the dollar and US Treasury yields could see fresh spikes at the mid-year point, weighing on oil.
In the 12 months through April, the so-called PCE price index as well as its core rate were still running well above the Fed’s 2% target.
The inflation numbers will feed into investor expectations around the Fed’s next rate decision in July after the central bank paused tightening at its June meeting but signaled more hikes ahead. Prior to that, the latest consumer confidence report is due out Tuesday after the index hit a six-month low in May. June's index is expected to tick higher.
The eurozone is to release preliminary inflation data for June on Friday. And while the headline rate of inflation is expected to moderate, core inflation is expected to tick higher, underlining the challenge facing the ECB.
ECB President Christine Lagarde struck a more hawkish tone than expected following the bank's most recent policy meeting, reiterating that rates would need to be increased again in order to bring inflation down to the ECB's 2% target and that they "will be kept at those levels for as long as necessary."
Traders are now betting on a July hike by the ECB and expect another move by October that would bring rates to 4%.