Extending strong gains, the oil prices neared $70 a barrel on Tuesday.
The primary reason being cited is the possibility of an escalating full scale trade war between United States and China.
However, the investors are said to be growing more optimistic that a trade dispute between two giants may get resolved without greater damage to the global economy.
Brent crude futures were up 81 cents at $69.46 a barrel by 0850 GMT, while US West Texas Intermediate crude futures were at $64.31, up 89 cents.
Concerns of a prolonged trade dispute between the world’s two biggest economies and uncertainty over the supply and demand balance of global oil markets have made for volatile trading in the last few weeks.