Crude oil prices in the international market grew about 2 per cent on Tuesday amid hopes that the Federal Reserve might ease up on its policy tightening after a key US inflation report this week, though concerns remain over Chinese demand.

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Brent crude futures settled up $1.43, or 1.7 per cent, to $85.61 a barrel. US West Texas Intermediate futures rose $1.79, or 2.2 per cent, to $81.53 a barrel.

Investors were more optimistic that the US Federal Reserve is getting closer to ending its cycle of interest rate hikes, making dollar-priced oil cheaper for buyers holding other currencies.

A US inflation report to be released on Wednesday is expected to help investors gauge the near-term trajectory for interest rates.

Data from China, however, showed consumer inflation in March rose at its slowest pace since September 2021, suggesting demand weakness persists in an uneven economic recovery.

Crude oil futures have climbed around 7% since the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia surprised the market last week with further cuts to production targets from May.

OPEC output will fall by 500,000 bpd in 2023, then rise by 1 million bpd in 2024, after the group's output agreement expires, the Energy Information Administration forecast on Tuesday.

Total non-OPEC liquid fuels production is expected to grow by 1.9 million barrels per day (bpd) in 2023 and by 1 million bpd in 2024, the EIA said.

In France, the restart of the last of the four domestic refineries shuttered by a month-long strike signaled a likely boost to demand for oil.

On the US supply front, industry data on US crude stockpiles was due on Tuesday. The average estimate from five analysts polled by Reuters was that crude inventories fell by about 1.3 million barrels in the week to April 7.

With Reuters Inputs