Oil prices rose about 2 percent as Russia and Ukraine exchanged missile launches, raising market concerns about crude supplies if the conflict escalates.
Brent crude futures rose $1.42, or 1.95%, to settle at $74.23 a barrel. U.S. crude futures rose $1.35, or 1.96%, to settle at $70.10 a barrel.
ING analysts said in a note that "the risk for oil would be if Ukraine targeted Russian energy infrastructure, and uncertainty about how Russia will respond to these attacks poses another risk."
Oil prices were hit by a 545,000-barrel rise in U.S. crude inventories to 430.3 million barrels in the week ended Nov. 15, beating analysts' expectations.
