Oil prices rise as equity markets grow

Oil prices extended gains Tuesday as global stock markets went up.

Global stocks rallied after the People's Bank of China (PBOC) announced to lower its reserve requirement ratio (RRR) to support the economy.

China's central bank aimed to "ensure reasonably ample liquidity in the financial system; guide a stable and appropriate growth in credit; and create a favorable financial environment for supply-side structural reform," the central bank said in a statement.

The fact that Saudi Arabia pledged to work with other crude producers also fed hopes that the oil market was bottoming up.

The Saudi cabinet said in a statement Monday that it "will always remain in contact with all main producers in an attempt to limit volatility and it welcomes any cooperative action."

The West Texas Intermediate for April delivery moved up 65 cents to settle at 34.4 dollars a barrel on the New York Mercantile Exchange, while Brent crude for May delivery increased 24 cents to close at 36.81 dollars a barrel on the London ICE Futures Exchange.