The price of Brent crude increased above $97 a barrel on Tuesday amid strikes against Islamic State targets in Syria by the US and various Gulf Arab allies.
Unexpectadly increased Chinese factory activity in September also boosted the demand outlook.
Reuters reported that Brent for November delivery rose 28 cents to $97.25 a barrel while US crude increased 31 cents to $91.18 a barrel.
The Chinese manufacturing sector surprisingly picked up momentum in September despite a decrease in factory employment to a five and a half year low.
Phillip Futures senior manager for commodities Avtar Sandu was quoted by the news agency as saying that the better-than-expected PMI of China pushed the prices up.
Sandu said: "The market was really oversold earlier and there was not much room for prices to go further down."
The oil price gains are being closely monitored due to concerns of a supply glut, which pulled down the prices of Brent by over 5% until now in September.
The oil benchmark is on its way for a third continuous monthly decline.
On Monday, Saudi Oil Minister Ali al-Naimi downplayed concerns about the declining price of crude oil, which spurred speculations that the Organization of the Petroleum Exporting Countries (OPEC) may cut down the oil supply to stablise prices, the news agency reported.