Oil rose further in Asian trade today, underpinned by a better-than-expected expansion in the US manufacturing sector, analysts said.
A weak greenback, which makes dollar-priced crude cheaper for holders of stronger currencies, was also an extra factor behind the higher futures, they added.
New York's main contract, light sweet crude for December delivery, advanced 26 cents to $78.39 a barrel.
Brent North Sea crude for December delivery gained 19 cents to $76.74.
The two contracts closed firmer on Monday, buoyed in part by the US manufacturing expansion.
The Institute of Supply Management said on Monday, its factory index, also known as the purchasing managers index, grew for a third consecutive month in October with a reading of 55.7 per cent.
It was stronger than market expectations for a reading of 53 per cent and the highest rate of growth since April 2006. Any number above 50 indicates growth.
"The reading marks the highest point in three and a half years," said Dariusz Kowalczyk, chief investment strategist with SJS Markets securities firm.
Among the sub-indexes in the survey, the employment index was 53.1 per cent, marking a sharp turnaround from last month's 46.2 per cent and suggesting that factories are starting to add jobs.
