Oil extends gains in Asian trade

Oil extended gains in Asia on Tuesday as financial markets cheered Japan's aggressive monetary easing policy seen as key to reviving the world's third largest economy, analysts said.

New York's main contract, light sweet crude for delivery in May, added 37 cents to $93.73 a barrel in the afternoon and Brent North Sea crude for May delivery rose 59 cents to $105.25.

Both contracts closed higher on Monday.

"Growth in stocks after the bank of Japan's monetary easing is favouring global growth and providing support to the oil market," said Michael McCarthy, chief market strategist at CMC Markets in Sydney.

The Bank of Japan, under its newly appointed governor Haruhiko Kuroda, last week announced bold monetary stimulus measures in a bid to revive the stagnant economy.

Kuroda said his team would double Japan's money supply by the end of 2014 and jack up asset purchases as it targets two percent inflation in as many years, vowing no let-up in the battle against falling prices which have plagued the economy for decades.

The move sent Japanese stocks higher, and a steep decline in the yen cheered exporters.

"Japan's policies are viewed as stimulus to revive its stagnant economy. If successful, Japan's policies will be positive for world growth, and hence, should be considered as 'enrich thy neighbour' and not 'beggar thy neighbour' policies," DBS Bank said in a research note.