NEW YORK (AP) — Oil prices are climbing on hopes that European leaders are closer to drafting a plan to contain the region's debt crisis.

Benchmark oil rose $3.21, or 4 percent, to $83.43 per barrel in Tuesday morning trading in New York. Brent crude increased $2.14 to $106.08 in London.

Greece's finance minister says the country will receive a new round of bailout loans to avoid a devastating default. German Chancellor Angela Merkel adds that her country will do whatever it can to help Greece regain investor confidence. The two leaders are expected to meet later Tuesday.

Investors hope an agreement by the European leaders will stave off another recession and strengthen demand for oil and other energy products.

The news also pushed stocks and other commodities higher.