Crude oil prices extend rally on prospect of fresh Russia sanctions

Oil futures rose on Tuesday as the United States and Europe planned new sanctions to punish Moscow over alleged war crimes by Russian troops in Ukraine, raising concerns of tighter global supply, while Iran nuclear talks stalled.

Brent crude futures rose $1.87, or 1.7%, to $109.40 a barrel, while U.S. West Texas Intermediate futures were up $1.83, or 1.8%, at $105.11 a barrel at 0615 GMT.

Both contracts briefly jumped more than $2 a barrel in early Asian trade after Japanese industry minister Koichi Hagiuda said the International Energy Agency (IEA) was still working out details for a planned second round of a coordinated oil releases.