Oil prices rise on possible disruption

Oil prices gained on Tuesday driven by concerns over tighter supply from Russia and Iran because of Western sanctions and expected higher Chinese demand.

Brent crude futures advanced 78 cents, or 1.02%, to $77.08 a barrel by 1618 GMT while US West Texas Intermediate (WTI) crude was up 51 cents, or 0.69%, at $74.07. Traders were looking to the Chinese stimulus plans to drive growth as supplies are tight following the Christmas and New Year's holidays, said Forex market analyst Razan Hilal.

"While the market is currently range-bound, it is recording gains on the back of improved demand expectations," Hilal said.