The West Texas Intermediate (WTI) for October delivery price increased by 2.02 USA dollars, or 3.07 percent, to settle at 67.86 dollars a barrel on the New York Mercantile Exchange, while Brent crude for October delivery increased by 2.15 dollars, or 2.96 percent, to settle at 74.78 dollars a barrel on the London ICE Futures Exchange.
A weaker dollar makes oil less expensive for buyers using other currencies.
The key problem that India is wrestling with is that during the Obama administration sanctions on Iran, "significant reductions" in oil imports from Iran amounted to a 20 percent reduction every six months.
But even with upgrades to infrastructure, the full capacity of exports is limited on the Gulf Coast because most can't load the larger crude oil vessels, the EIA said.
"The OPEC Reference Basket of Crudes (ORB) is made up of Saharan Blend (Algeria), Girassol (Angola), Djeno (Congo), Oriente (Ecuador), Zafiro (Equatorial Guinea), Rabi Light (Gabon), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela)".
The US/China trade tensions fuelled concerns that global economic growth could slow, weakening worldwide energy demand. US crude CLc1 was up 89 cents, or 1.3 percent, at $68.72. At the beginning of August, oil prices started their longest weekly losing streak in three years.
Thanks to these sanctions, Iran's exports could go down by as much as 1 million barrels of oil a day. The global benchmark crude traded at a $6.90 premium to WTI.
United States crude inventories fell 5.8-million barrels last week, the Energy Information Administration (EIA) said, more than the 1.5-million-barrel draw forecast by analysts polled by Reuters.
Crude stocks at the Cushing, Oklahoma delivery hub rose by 772,000 barrels.
Chinese ship owners are no longer accepting Iranian oil and its using its own tankers to supply oil to top United States customers as the impending American sanctions are expected to disrupt worldwide trade.