Oil prices traded higher on Tuesday, after having fallen over 3 percent on Monday amid demand concerns and signs that the Israel-Hamas war will remain contained.
Benchmark Brent crude futures rose 0.6 percent to $86.90 a barrel, while WTI crude futures were up 0.7 percent at $82.92.
A weaker dollar helped push prices higher as investors await cues from the Fed and BOE meetings this week.
The upside remained capped after data showed China's manufacturing activity unexpectedly contracted in October.
Middle East events were also in focus, with Israeli Prime Minister Benjamin Netanyahu rejecting calls for a ceasefire in the war against Hamas.
"Calls for a ceasefire are calls for Israel to surrender to Hamas, to surrender to terrorism... this will not happen," he said, vowing Israel would "fight until this battle is won".
The World Bank warned in its latest Commodity Markets Outlook that the ongoing conflict in Middle East could push global commodity markets into unchartered waters.
