West Texas Intermediate crude oil continued Monday's rally sparked by better than expected purchasing managers indexes for Chinese and U.S. manufacturing.
Traders are also waiting for word on production quotas from the Organization of Petroleum Exporting Countries, which meets in Vienna Wednesday. In the short term, projections call for a draw down in U.S. stocks that will be announced Wednesday afternoon by the Energy Information Administration.
Light, sweet January crude oil on the New York Mercantile Exchange added $2.22 or 2.32 percent to reach $96.02 per barrel.
Reformulated gasoline blendstock for January gained 4.45 cents or 1.66 percent to reach $2.7229 a gallon.
January heating oil added 1.54 cent, 0.5 percent, to hit $3.0451 a gallon while natural gas dropped 2 cents to $3.97 per million British thermal units.
The national average price of unleaded regular gasoline gave up 0.5 cent to $3.263 a gallon from Monday's $3.268 a gallon, the AAA Daily Fuel Gauge Report said.