West Texas Intermediate oil rose after a government report showed stockpiles dropped at Cushing, Oklahoma, the contract's delivery point. Brent gained as fighting intensified in eastern Ukraine.

Cushing supplies fell by 1.45 million barrels to 18.8 million last week, according to the Energy Information Administration. The decline left stockpiles at the lowest level since November 2008, data from the EIA, the Energy Department's statistical arm, showed. Separatists shot down two Ukrainian fighter jets in the same region where Malaysian Air flight MH17 was destroyed, the government said.

WTI for September delivery advanced 28 cents to $102.67 a barrel at 10:33 a.m. on the New York Mercantile Exchange. The August contract expired yesterday after losing 17 cents to $104.42. The volume of all futures traded was 16 percent below the 100-day average for the time of day.

Brent for September settlement rose 39 cents, or 0.4 percent, to $107.72 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude traded at a $5.05 premium to WTI, up from $4.94 at yesterday's close.

Nationwide crude stockpiles fell 3.97 million barrels to 371 million in the week ended July 18, EIA data showed. A 2.9 million-barrel decline in supply was projected by analysts surveyed by Bloomberg.

Gold traded in a narrow range amid a lack of macroeconomic data from the U.S., while investors continue to monitor the situation in Ukraine.

Gold prices rose in recent months against the backdrop of escalating conflict between the Ukrainian military and pro-Russian separatists, located in the east of the country. What happened recently Malaysian Airlines plane crash in eastern Ukraine increased investor interest in gold as a safe haven against the backdrop of geopolitical tensions. Authority of the West think that the plane was shot down by pro-Russian separatists.

Tuesday train human remains after the collapse of the Malaysian ship arrived in Kharkov, Ukrainian-controlled central government. Pro-Russian militia handed Malaysian officials "black boxes", that is the flight recorders.

"However, since no applications have been received from Moscow, and the Russian military are still at the Ukrainian border, probably (for Russia) will introduce new sanctions" - written by Liz Grant, Senior Sucden Financial, in a note to clients .

EU finance ministers on Tuesday tightened sanctions against Russia and threatened restrictions on trade and other military equipment, unless Moscow will cooperate and do not flatten the conflict.

The cost of the August gold futures on the COMEX trading today in the range of $ 1305.10 - $ 1311.80 per ounce.

(raw materials / closing price /% change)

Light Crude 104.42 0.00%

Gold 1,307.50 +0.09%