Oil rose above $44 a barrel today, after sinking 4% yesterday, gaining support from a weaker dollar and a meeting of OPEC later this month.
The market was also supported by China's optimism that its domestic economy was recovering and official promises of swifter stimulus action when required. China is the world's second-largest oil consumer.
US crude was up 98 cents at $44.57 a barrel by 12.05pm after rising as high as $44.76, while London Brent crude advanced 56 cents to $44.20 a barrel.
Markets will be watching for the February US non-farm payrolls data due later in the session, which will probably show unemployment surging to a 25-year high in the world's top oil consumer.
The key non-farm payrolls report is expected to show the economy shed 648,000 jobs in February, while the unemployment rate is expected to rise to a 25-year high of 7.9%, according to a Reuters poll.
Oil has traded in a band from around $33 to $50 since mid-December, pressured by slumping demand due to the economic downturn. Expectations OPEC might cut production again when it meets on March 15 have added support.
OPEC has agreed to cut production by 4.2 million barrels per day since September, and a Reuters survey found that members have met 81% of their output reductions as of last month.
