The benchmark crude oil futures contract hit a new high for the year of $77.47 a barrel in pre-market trading early Tuesday, up $0.64 from the previous day.

The rally reflects widespread optimism about U.S. economic prospects due to a rebound Monday in U.S. stocks, traders said.

Oil prices may to gain further ground because the Organization of Petroleum Exporting Countries is showing no signs of raising oil output, making it unlikely that the oil supply-demand situation will ease later this year, a U.S. energy-sector analyst said.