US traded crude oil futures rallied on Wednesday, rising by 8%, after the US dollar declined and amid news reports of Russia raising the prospect of a meeting with OPEC.
Earlier, Nymex oil futures had dipped in response to a steep advance in American crude inventories - their fourth weekly increase in a row.
March WTI crude gained US$2.40, or 8%, to settle at US$32.28 per barrel on the New York Mercantile Exchange, recouping much of the more than 11% drop it suffered in the previous two sessions.
It had briefly fell as low as US$29.78 after the supply data, before recovering.
Brent crude oil futures rose by US$2.32, or 7.1%, to finish at US$35.04 per barrel on London’s ICE Futures exchange.
The US Energy Information Administration (EIA) reported on Wednesday that crude inventories rose by 7.8 million barrels for the week ended Jan. 29.
The weekly increase lifted total American crude supplies to 502.7 million barrels - the highest weekly level on record.
The dollar logged its largest one-day drop versus the euro since early December following weaker-than-expected economic reports on the service sector and private sector employment.
The ICE US Dollar index, a measure of the dollar’s strength against a basket of six currencies, fell to a session low of 96.8900 - its weakest level since early November.
Separately, Russia reiterated its willingness to talk with OPEC producers on a plan to help boost oil prices, according to media reports.
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