LONDON: Brent crude rebounded on Thursday, a day after a slump in hopes of sanctioned Russian oil being largely replaced by purchases from elsewhere.
European benchmark Brent North Sea crude was up 5.1% at $116.80 a barrel in early trade.
The New York WTI contract rose 3.5% to $112.58.
Both contracts fell more than 12% in value on Wednesday as traders also seized on the silver lining of peace talks between major producers Russia and Ukraine.
Brent fell to $105.60 after hitting a high of $139 two days ago as the Ukraine crisis continued to send shockwaves through the market.
The United Arab Emirates said on Wednesday it would urge the rest of the OPEC oil-producing cartel to boost output, while U.S. talks with big producer Venezuela appeared to be making progress.
“Crude prices rebounded this morning after being weighed down by various Russian headlines,” said Markets.com analyst Neil Wilson.
“Brent and WTI tumbled yesterday as the UAE said it could start pumping more oil and called on OPEC’s friends to do more.
“Comments from Russian and Ukrainian officials also point the way to peace, but the situation on the ground is no exception.”
Meanwhile, Iraq has said it can boost production and nuclear talks with Iran are showing signs of bearing fruit.
However, with the war in Ukraine still raging and crude supplies still tight, the commodity is expected to maintain its price strength.
“Traders are still very cautious as they don’t know whether the current change in momentum or the shift in oil’s trend direction will continue,” said AvaTrade analyst Naeem Aslam.