Oil prices closed higher on Tuesday, supported by a weak dollar and boosted by the validation of the US economic recovery plan despite the bleak demand outlook.

The barrel of North Sea Brent for February delivery rose 0.45 percent or 23 cents to 51.09 dollars.

The American barrel of WTI for the month of February rose 0.79% or 38 cents to 48.00 dollars.

“Oil seems to be benefiting from the passage of the American plan,” summarised Jeffrey Halley, an analyst at Oanda. “Crude prices have also increased with the weakness of the dollar,” added Ed Moya, also at Oanda

U.S. President Donald Trump signed a $900 billion economic recovery plan on Sunday evening providing assistance to households and small businesses in the world's top crude-consuming country.

In addition, the House of Representatives, dominated by Democrats, voted Monday for even more aid to American households, but the Senate, with a Republican majority, will have the last word.

On Wednesday, the U.S. Department of Energy publishes its weekly report on American crude stocks. They are expected to fall by 3 million barrels, according to analysts' estimates

In addition, the Organization of Petroleum Exporting Countries (OPEC) and its allies, including Russia, are due to meet on Monday, January 4, for their monthly meeting.

At the beginning of December, member countries decided to increase their production, which they voluntarily limit, by only 500,000 barrels per day, to avoid flooding the market with the 2 million barrels per day initially planned.

With prices rising, “the question is how vigorously, and at what pace, producers will turn on the faucet,” warns Stephen Innes, an analyst at Axi.