As predictions of tighter supply outweighed concerns that an uncertain economic outlook would restrict demand, oil prices recovered from a decline to a two-week low in early trade on Tuesday, closing about 1% higher.

Brent crude inched up by 0.7% at $93.96 per barrel, meanwhile US WTI climbed by 0.8%, at $90.39 per barrel.

Monday saw Russia relax its export restrictions on gasoline and diesel. Exports of goods already approved by Russian Railways and Transneft may proceed, and the prohibition will not apply to fuel for bunkers and gasoil with a greater sulfide content.

However, there is still a ban on the export of premium diesel and gasoline.

Despite Saudi Arabia and Russia extending output curbs through the end of the year, the oil supply is still limited.

The U.S. Federal Reserve and the European Central Bank, two of the biggest central banks in the world, have recently reaffirmed their commitment to fighting inflation, suggesting restrictive monetary policy may last longer than initially thought. Higher interest rates stifle economic expansion, which lowers demand for oil.

The U.S. dollar touched a 10-month high on Tuesday, limiting gains as higher bond yields drew investors to the dollar.