On Tuesday crude oil futures edged higher, as investors swallowed strong manufacturing data from the euro zone.
On the ICE Futures Exchange in London, Brent oil for May delivery climbed 66 cents, or 1.17%, to trade at $56.58 a barrel during European morning hours.
On the New York Mercantile Exchange, crude oil for delivery in May rose 67 cents, or 1.41%, to trade at $48.12 a barrel, the most since March 13.
The spread between the Brent and the WTI crude contracts stood at $8.46 a barrel, compared to $8.47 by close of trade on Monday.
Prices hit the highest levels of the session after data showed that the euro zone's economic recovery gathered further momentum in March, adding to signs that the European Central Bank’s QE is incentivising the real economy.
As research group Markit reported, the euro zone’s manufacturing purchasing managers’ index improved to a ten-month high of 51.9 this month, up from a final reading of 51.0 in February.
The PMI surveys pointed to economic growth of 0.3% in the current quarter, buoyed by a 0.4% expansion in Germany and signs of a long-awaited recovery in France.
France's private sector had expanded for a second straight
month, while Germany's manufacturing sector activity climbed to an eight-month high in March.
Earlier in the session, oil prices were lower after data showed that Chinese manufacturing activity swung into contraction territory this month.
The preliminary reading of China’s HSBC (LONDON:HSBA) manufacturing index fell to an 11-month low of 49.2 in March, below the 50-point level that separates growth in activity from contraction, while analysts had expected a reading of 50.6, down slightly from February's reading of 50.7.
The downbeat news fuelled speculation policymakers in Beijing will have to introduce further stimulus measures to boost growth and spur economic activity in the world's second largest economy.
Investors awaited fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of demand in the world’s largest oil consumer.
Later in the day, the American Petroleum Institute will issue its inventories report, while Wednesday’s government report could show crude stockpiles rose by 3.8 million barrels in the week ended March 20.
Last week's data showed that total U.S. crude oil inventories stood at 458.5 million barrels, the most in at least 80 years, underling concerns over a supply glut.
