U.S. oil rose more than 3 percent on Tuesday as a tumbling dollar boosted commodities denominated in the greenback.
Crude oil futures also rose on the back of a 3-percent hike in U.S. gasoline and ultra-low sulfur diesel, or heating oil, prices. U.S. gasoline margins climbed as high as 4 percent in early trading in part on a series of refinery unit outages in the U.S. Gulf Coast market, traders said.
"I think the market has become more optimistic on oil products," said Scott Shelton, broker and commodities specialist with ICAP in Durham, North California. "If refining margins stay strong, crude runs will be quite high and that will make the odds of a crude stock draws increase significantly."
Analysts polled by Reuters expect the U.S. government to announce on Wednesday that crude stocks fell by 2.3 million barrels last week while distillate and gasoline stockpiles fell. Industry group American Petroleum Institute will issue preliminary inventory later on Tuesday.