Oil futures jumped back above $100 a barrel Tuesday, lifted by better-than-expected economic growth in China that boosted expectations for higher crude demand.

Light, sweet crude for February delivery recently gained $1.55, or 1.6%, to $100.25 a barrel on the New York Mercantile Exchange. Brent crude on ICE Futures Europe added 15 cents, or 0.1%, to $111.49 a barrel.

China 's economy grew at a brisk 8.9% pace in the last quarter of 2011. Although the pace marked a slowdown from the year-ago quarter, the figure beat many analysts' expectations and eased concerns of a demand slowdown in the world's No. 2 crude consumer.

"It was the perfect number for commodities," said Phil Flynn, an analyst at PFG Best in Chicago . "It was strong enough not to worry about a dramatic drop in demand, yet it was weak enough to imply we'll see" additional stimulus measures to further help demand.

The oil market has increasingly turned to China to support demand and prices in recent years, as the country continues to enjoy brisk growth despite weakness in the U.S. and Europe . That growth has helped feed surging demand for automobiles and has made the country the second-largest oil consumer after the U.S.

Still, the fourth-quarter figure marked a decline from both the year-ago level and the previous quarter, leaving lingering concerns that oil demand could be shrinking in the long run. Between 2000 and 2009, China 's economy grew at an average pace of 10%, according to the U.S. Energy Information Agency.

Tuesday's rally marks a quick return of the U.S. benchmark to the $100 mark. Nymex futures had spent all of 2012 above the psychological level, until a selloff late last week sent it as low as $98.70.

Separately, oil prices were underpinned Tuesday by comments from Saudi Arabia 's oil minister indicating that $100-a-barrel oil was desirable. The comments signal that Saudi Arabia , the world's biggest oil exporter, will likely be adjusting its output to defend the price as producers such as Libya and Iraq see their own exports return to the market.

The comments also suggest that the country won't be flooding the market with crude if western nations push forward with stricter oil sanctions against Iran .

"The ambiguity of the proposed embargo on Iran is that it relies on a stronger world partnership with Saudi Arabia , but Saudi Arabia has been particularly good at defending its own interest first," said Olivier Jakob, head of the Swiss oil consultancy PetroMatrix.

Front-month February reformulated gasoline blendstock, or RBOB, recently traded up 5 cents, or 1.8%, to $2.7842 a gallon. February heating oil traded up 1.75 cents, or 0.6%, to $3.0447 a gallon.

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