Oil prices climbed on Tuesday reversing earlier declines, as fears of tighter Russian and Iranian supply due to escalating Western sanctions lent support. Brent futures were up 59 cents, or 0.77%, to $76.

Oil prices were rising as investors start the new year on a positive note. Brent crude and WTI were both up—0.5% at $74.98 a barrel and $72.05 a barrel, respectively. Optimism for oil demand has been boosted by Chinese leader Xi Jinping's annual New Year's address on Tuesday,

Executives at US shale companies plan to increase spending this year despite giving a lower view on oil prices in the latest energy survey from the Federal Reserve Bank of Dallas.

The incoming Trump administration could have a volatile impact on energy markets, but it isn’t a clear buying signal for oil equities.