The West Texas Intermediate for April delivery gained 1.37 U.S. dollars, or 1.81 percent, to settle at 77.05 dollars a barrel on the New York Mercantile Exchange. Brent crude for April delivery added 1.44 dollars, or 1.75 percent, to close at 83.89 dollars a barrel on the London ICE Futures Exchange.
The rally came as traders focused on rising demand from China.
China's oil demand is expected to rise by 0.9 million barrels per day on average for the year, according to the International Energy Agency forecast released earlier this month, which would be almost half of the expected increase in global oil demand.
"The situation on the oil market will tighten noticeably as Chinese demand picks up further," Barbara Lambrecht, energy analyst at Commerzbank Research, said Tuesday in a note.
Traders also assessed oil supply from Russia as the country has previously announced that it would cut production by 500,000 barrels a day in March.
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