U.S. President Donald Trump announced last week that the United States will withdraw from the Iran nuclear deal, a landmark international agreement signed in 2015.
In a televised speech, Trump announced the exit, adding he will not sign the waiver of nuke-related sanctions against Iran.
The oil market retained support from the concerns over U.S. sanctions on Iran as traders bet it would reduce global crude supplies.
In a monthly oil market report released on Monday, the Organization of the Petroleum Exporting Countries (OPEC) raised its forecast for global oil demand in 2018, expecting the world to consume 98.85 million barrels a day, 1.65 million barrels a day higher than last year.
The data from OPEC also showed that the Organization for Economic Cooperation and Development (OECD) commercial oil stocks in March fell by 12.7 million barrels from previous month to nearly 2.83 billion barrels.
Experts pointed out geopolitical concerns, tightening product inventories and robust demand would continue to provide support for prices.
The West Texas Intermediate for June delivery was up 35 U.S. cents to settle at 71.31 dollars a barrel on the New York Mercantile Exchange, while Brent crude for July delivery rose 20 cents to close at 78.43 dollars a barrel on the London ICE Futures Exchange.