Oil prices climbed above $76 on the back of optimism over global energy demand and the world economic outlook.
New York's main futures contract, light sweet crude for delivery in July, jumped $1.48 to $76.60 dollars a barrel in late afternoon deals.
Brent North Sea crude for July delivery rose $1 to $76.34.
Oil had also risen in earlier deals owing to the weaker US currency.
A weaker dollar boosts demand for dollar-priced commodities as they become cheaper for buyers holding rival currencies.
Oil prices had already soared higher on Monday as the dollar weakened after data showed an expansion of industrial production in the eurozone, which is battling a budget-deficit crisis.
