Oil prices rebounded above $82 on bargain hunting after prices plunged in reaction to China's surprise hike in rates.
The market was also awaiting an update on energy stockpiles in the US.
Brent North Sea crude for delivery in London was up $1.06 to $82.16 a barrel in morning London trade. The contract had plunged $3.27 yesterday.
US crude for November delivery rose $0.94 to $80.43 a barrel after dropping by $3.49 yesterday, its biggest one-day fall since early February.
Yesterday, China raised interest rates for the first time in nearly three years, rattling global markets.
The People's Bank of China, the country's central bank, increased the one-year yuan lending rate to 5.56% from 5.31%, and the one-year yuan deposit rate to 2.5% from 2.25%.
Strikes in France that threaten to paralyse the economy there were also helping push oil prices higher as the mass actions were causing a fuel supply shortage, analysts said.
