World oil prices rose on the back of a larger than-expected drop in US crude inventories after Hurricane Alex disrupted some Gulf of Mexico production last week.
US crude for delivery in August, rose $0.56 to $74.63 a barrel, after nearly touching $76.
Brent North Sea crude for August advanced $0.49 to $74.00.
The US government's Department of Energy (DoE) announced that American oil reserves plunged by almost five million barrels in the week ending July 2.
That easily beat market expectations for a 1.8-million barrel drop.
Gasoline or petrol stocks gained 1.3 million barrels last week. Distillates, which include diesel or heating fuel, grew 300,000 barrels.
The DoE report was published one day later than normal owing to a US public holiday on Monday.
Oil prices also gained ground as traders took their cue from buoyant global equity markets and other upbeat US data.
