The West Texas Intermediate for January delivery settled 73 cents higher at 60.94 U.S. dollars a barrel on the New York Mercantile Exchange. Brent crude for February delivery rose 76 cents to close at 66.10 dollars a barrel on the London ICE Futures Exchange.
"The conditions for a rising oil price appear favorable at present," Eugen Weinberg, energy analyst at Commerzbank Research, said in a note on Tuesday, adding that economic optimism coupled with growing investor demand lent some support.
Output cuts by world's major oil producers also contributed to the upswing, experts noted.
Earlier this month, the Organization of the Petroleum Exporting Countries (OPEC) and its allies agreed to steepen production cuts by an additional 500,000 barrels a day, bringing the total cuts to 1.7 million barrels daily.
This additional adjustment would be effective as of Jan. 1, 2020 and is subject to full conformity by every participating country. The OPEC, Russia and other producers have been largely limiting oil output since 2017 in order to boost prices.
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