Oil prices rose more than 3% today after a smaller-than-expected US crude build offset glut worries stirred by the end of a Kuwaiti strike and on speculation that major oil producers were meeting in Russia in May for another attempt at curtailing output.
Moscow, however, denied media reports of such an impending meeting.
Just on Sunday, Russia and OPEC nations failed to reach an agreement on freezing production at a meeting in Doha, Qatar.
"There is no such agreement," Russian Energy Minister Alexander Novak was quoted as saying by RIA news agency, referring to the meeting supposedly to be held in Russia.
Russia also said earlier that it was ready to ramp up its oil output in a further fallout among major oil producers after the freeze deal failure.
Brent's front-month contract was up $1.30, or 3%, at $45.33 a barrel shortly before 6pm Irish time.
It had fallen to a session low of $42.81 earlier.
US crude's front-month contract, May, due to expire today, was up $1.25 at $42.33 a barrel. The session low was $39.85.
Oil prices rebounded after the US Energy Information Administration said crude stocks rose 2.1 million barrels last week, compared with forecasts for a 2.4 million-barrel build and industry group American Petroleum Institute's data showing a 3.1 million-barrel rise.
"It's overall mixed and slightly supportive, with total stocks of refined products and crude oil combined declining slightly," Dominick Chirichella, senior partner at the Energy Management Institute in New York said, commenting on the EIA data.
Prices of ultra-low sulphur diesel, also known as heating oil, rose 4% and hit 4-1/2-month highs after an unexpected drop in stockpiles of distillates, which include diesel.
"Distillates are the standout bullish element of the report and gasoline is the disappointment," said Matt Smith, director of commodity research at New York-headquartered energy data provider ClipperData.
Crude prices had initially tumbled as the Kuwaiti oil and gas industry called off a three-day strike and reports later said six super tankers had lined up at Kuwait's crude export terminal to load oil.
Kuwait has also raised its oil output to 1.6 million barrels per day (bpd) from 1.1 million on Sunday.
