Crude prices rose on Tuesday as the U.S. stocks gained and the dollar weakened.
The U.S. stocks rose driven by financial sector as analysts said that the large banks which have reported quarterly results turned to be healthier than expected. Bank of America reported quarterly profit of 5.9 billion dollars after JP. Morgan and Citi Group earnings beat market's estimates, easing concerns about the negative impacts of European sovereign debt on bank system.
Big gains on the equities market boosted the confidence of crude investors, pushing the prices higher.
And the dollar fell against its major counterparts. The dollar index decreased more than 0.1 percent, making the dollar- denominated oil cheaper.
In the Middle East, unrest in Yemen and Egypt led to an intensified tension in the oil-rich area, offering further support to crude prices.
In Europe, there wasn't any progress in addressing the debt problems, biting the patience and confidence of investors.
And Libya was expected to resume oil production as rebels strengthened their control of the country.
Light, sweet crude for November delivery added 1.96 dollars, or 2.27 percent to settle at 88.34 dollars a barrel on the New York Mercantile Exchange. In London, Brent crude for December delivery climbed 99 cents, or 0.9 percent to close at 111.15 dollars a barrel.