NEW YORK - Oil prices rose for a second day on Tuesday on supportive report showing China's inflation slowed in March.

China's consumer price index, a main gauge of inflation, grew 2.1 percent year-on-year in March, down from a 10-month high of 3.2 percent in February, official data showed Tuesday.

China aims to hold this year's consumer inflation at around 3.5 percent, according to the government work report released last month.

China's consumer inflation cooled in March as food prices eased, leaving policymakers more room to keep money policies easy.

Federal Reserve's chairman Bernanke said in a speech Monday that economic conditions of the United States were far from where he would like them to be.

Traders believed that the loose monetary policy from central banks around the world could underpin the global economic growth.

Alcoa released a mixed first-quarter earnings report in the previous day to kick off a start of new round of corporate earnings season. Its earnings exceeded analysts' estimates while revenue trailed projections.

The dollar fell as much as 0.7 percent Tuesday to the lowest level since March 15, raising dollar-denominated oil more appeal as an investment alternative.

Light, sweet crude for May delivery advanced 84 cents, or 0.9 percent, to settle at 94.2 dollars a barrel on the New York Mercantile Exchange.

While Brent crude for May delivery was also up 1.67 dollars, or 1.6 percent, to close at 106.33 dollars a barrel.