Oil prices recovered some ground on Tuesday after having fallen over 4 percent the previous day on fuel demand concerns.
Benchmark Brent crude futures rose 1.2 percent to $72.73 a barrel, while WTI crude futures were up 1 percent at $67.78.
A weaker U.S. dollar and China's surprise rate cut offered some support as investors fret about the outlook for energy demand.
The dollar sagged on hopes that U.S. inflation data later in the day would likely show an easing in prices in May, and that the Federal Reserve would resist raising rates at the end of a two-day policy meeting on Wednesday.
The European Central Bank is expected to hike interest rates by another quarter percentage point on Thursday while the Bank of Japan is expected to maintain its ultra-loose policy when it meets on Friday.
Meanwhile, the People's Bank of China (PBOC) cut its seven-day reverse repo rate by 10 basis points in a bid to restore market confidence and prop up slowing economic growth.
China's new loan data missed expectations, but fueled speculation that policymakers will unveil more stimulus to support the economy.
