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Brent crude was up 43 cents, or 0.8%, at $56.31 by 1117 GMT,
while U.S. crude rose 43 cents, or 0.8%, to $53.20. Both
contracts rose nearly 1% on Monday and are set to post the third
monthly rise in a row.
Prices moved up slightly after reports of a blast in the Saudi
Arabian capital Riyadh, although the cause remains unclear.
In Europe, gains in financial services and chemical sectors
helped stocks rise on Tuesday. Risk assets such a equities and
oil often move in tandem.
On the supply side, the Organization of the Petroleum Exporting
Countries and its allies' compliance with pledged oil output
curbs is averaging 85% in January, tanker tracker Petro-Logistics
said on Monday. The findings suggest the group has improved
compliance supply curb commitments.
Also, output from the giant Tengiz field in Kazakhstan was
disrupted by a power cut on Jan. 17.
"It appears that market players are cautiously sanguine about
the producer group's market management strategy and therefore
about the imminent depletion in global oil inventories," PVM
analysts said.
Dampening bullish sentiment, U.S. Democrats are still trying to
convince Republican lawmakers of the need for more stimulus,
raising questions over when and in what form a package will be
approved.
Even as the pace of new infections falls in the United States,
European nations have set tough restrictions to combat the
spread of the coronavirus while vaccines are rolled out.
China is reporting rising COVID-19 cases, casting a pall over
demand prospects in the world's largest energy consumer.
Still, there are areas where demand for oil remains strong.
In India, crude oil imports in December rose to their highest in
more than two years as the easing of coronavirus restrictions
boosted economic activity.
(Additional reporting by Aaron Sheldrick in Tokyo; editing by
Alexander Smith and David Evans)
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