Crude oil futures rallied Tuesday along with U.S. stocks.
WTI light sweet oil was up $1.97 at $65.44 a barrel, its biggest one-day gain in a few weeks.
The U.S. Energy Information Administration (EIA) on Tuesday raised its estimates for U.S. oil production and gasoline prices. An average price retail price for a gallon of regular gasoline will reach $2.74 a gallon for the April through September summer driving season, up 14% from a year ago, according to the EIA.
In economic news, the Labor Department said its producer price index rose by 0.3 percent in March after edging up by 0.2 percent in February. Economists had expected producer prices to inch up by 0.1 percent.
"This pipeline price pressure will feed into consumer prices soon and will ultimately prompt the Fed to hike interest rates an additional three times this year," said Paul Ashworth, Chief U.S. Economist at Capital Economics.