New York's main contract, light sweet crude for delivery in October, advanced 78 cents to USD 97.25 a barrel and Brent North Sea crude for October delivery gained 37 cents to USD 116.15.
Traders were hoping that the bleak European and Chinese manufacturing data would lead to more stimulus soon, said Nick Trevethan, senior commodities strategist for ANZ Research in Singapore.
"Certainly the data of late I think has been supportive of policy easing. China's in particular do suggest something needs to be done there," he told AFP.
Chinese figures released yesterday showed manufacturing activity in the world's largest energy consumer falling for a tenth consecutive month to its lowest level in more than three years in August.
The weak performance showed that previous stimulus measures enacted by the government were insufficient and more policy easing was needed, analysts said.
In Europe, survey data compiled by the Markit research firm and released Monday showed eurozone manufacturing activity contracting for a seventh month in a row in August, with the fall sharper than initial forecasts.
The purchasing managers index (PMI), a survey of thousands of eurozone manufacturers, came in at 45.1 in August, down from a flash estimate of 45.3 Any score below the 50 mark indicates contraction.
All eyes are now on the European Central Bank's meeting on Thursday, with expectations mounting that its president Mario Draghi could unveil a bond-buying plan to boost debt-laden nations such as Italy and Spain.