Crude rose more than 1% earlier in the week due to increased geopolitical risks in Europe and the Middle East where wars continue to threaten global supplies.
Brent crude futures rose $1.08 (1.3%) to $85.33 a barrel. US West Texas Intermediate was up $1.24 (1.5%) at $81.57 a barrel.
Global benchmark Brent has recovered from an early June close of $77.52 and now it remains well below the high of $90 since mid-April.
The price rose after a Ukrainian drone strike that caused a major fire at a fuel tank at an oil terminal in the southern Russian port of Azov.
The Port of Azov has two oil product terminals that handle a total of about 220,000 tons of fuel for export in the period from January to May.
The ongoing attacks on Russia's oil refining complex have threatened global supplies and increased the price premium in the crude oil market.
The Ukraine attack warned markets that Russia's energy infrastructure is now under threat. The global market needs barrels of crude oil and refined products to control prices.
Israel's Foreign Minister Katz warned that a decision on an all-out war with Hezbollah will be made soon despite the US's efforts to avoid a bigger war in the region.
Special envoy Amos Hochstein to US President Joe Biden said he was sent to Lebanon immediately after a brief visit to Israel because of the critical situation.
Meanwhile, prices also rose after New York Fed President John Williams said interest rates would come down gradually but did not give an exact timetable.
The market is also eyeing US storage data to be released this week as an indication of the outlook for oil demand during the summer driving season.
According to the American Petroleum Institute, US crude oil inventories rose sharply last week while gasoline stocks fell.
