New pipeline and rail capacity has come online in recent months to alleviate the glut of crude at Cushing that has built up as more production from U.S. shale and Canadian oil sands comes into the region. Many players expect drawdowns at the oil hub to grow, supporting U.S. oil prices relative to Brent.
"Over 2 million barrels per day (bpd) of global refinery capacity will return by late July on top of the 2.5 million bpd that has returned over the past four weeks, providing ample opportunity for runs to rise," Morgan Stanley said in a note.
Prices were also supported by data on Monday from the Institute for Supply Management that showed U.S. manufacturing activity grew in June.
Investors are looking ahead to inventory reports from the American Petroleum Institute and the U.S. Department of Energy's Energy Information Administration (EIA).
U.S. commercial crude oil stocks were expected to have fallen last week due to lower imports and higher refinery activity, an extended Reuters poll of 11 analysts showed on Tuesday.