U.S. crude oil price rose on Tuesday after the Organization of the Petroleum Exporting Countries (OPEC) said in a report that the world's demand for oil would be more than previously expected.

Brent crude also advanced on Tuesday as the 12-member OPEC said in its monthly report that world oil demand will grow faster than previously thought in 2013.

The U.S. Energy Information Administration (EIA) said in a report that world oil demand would grow faster than earlier forecast in 2013, adding that rapid rises in the north American supply may not be enough to contain gasoline prices as spring is approaching.

The EIA also increased its forecast for demand growth to 1.05 million barrels per day in 2013, leading to a total of 90.2 million barrels per day due to world economic recovery.

As there were no important data released on Tuesday, investors were closely watching U.S. President Obama's State of the Union address slated for late Tuesday and the G20 meeting in Moscow later in the week.

Light, sweet crude for March delivery gained 48 cents, or 0.49 percent to settle at 97.51 dollars a barrel on the New York Mercantile Exchange.

Brent crude for March delivery climbed 53 cents, or 0.45 percent to close at 118.66 dollars a barrel.