Brent crude settled at $88.17 a barrel by 0415 GMT, while US West Texas Intermediate crude rose 7 cents to $81.69 a barrel.
Crude oil prices in physical markets started the year higher as China, which is no longer operating under coronavirus restrictions, showed signs of more buying, and traders feared that sanctions imposed on Russia could lead to tighter supplies.
Investors returned to oil futures contracts at the fastest rate in more than two years, as fears of a global business cycle contraction receded.
US investors are pretty sure that the Federal Reserve will implement a small increase in interest rates next week even as it continues its commitment to reining in inflation, which recent data shows is slowing.
This week, traders are watching for more business data that could indicate strength in global economies during earnings reporting season.
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