Crude prices rose on Tuesday after a correction the day before, as positive data from Europe and the United States boosted oil demand outlook.

Market sentiment was bolstered by hopes for an improving global economy after the release of better-than-expected eurozone data.

Markit's Eurozone Composite purchasing manager's index, which is seen as a good gauge of the region's economic growth, rose to a 10-month high of 48.6 in January, up from 47.2 in December. The data offset worries about reemerging debt problems in Spain and Italy and lifted oil prices.

In the United States, the Institute for Supply Management said on Tuesday that its U.S. services sector index eased slightly to 55.2 in January from a revised 55.7 the month before. The reading was in line with market expectations and indicated a rising momentum in the nation's non-manufacturing sectors.

Meanwhile, the HSBC Services PMI for China rose to 54.0 from the prior month's reading of 51.7, reinforcing market confidence in the world's second largest economy.

Besides, the rebounding U.S. equities also lent some support to oil prices.

Iran and major world powers announced on Tuesday that new talks over Tehran's controversial nuclear program were scheduled for Feb. 26, but investors seemed to believe that chances for any substantial progress were limited.

Light, sweet crude for March delivery gained 47 cents, or 0.49 percent, to settle at 96.64 dollars a barrel on the New York Mercantile Exchange.

Brent crude for March delivery climbed 92 cents, or 0.80 percent, to close at 116.52 dollars a barrel, with its premium to the U.S. crude expanding to 19.88 dollars.