Oil prices surged as much as 12 per cent on world markets after new suggestions Opec nations are set to cut oil production.
The Wall Street Journal reported the United Arab Emirates' energy minister said Opec members are ready to reduce output.
And Venezuela's oil minister said oil-producing nations are on a "very good path" to clinch a deal.
However, traders say sharp falls the day before may have triggered some bargain-hunting.
And many are sceptical about the Wall Street Journal's report, pointing out that Venezuela and Russia had tried in vain earlier this week to stir Saudi Arabia and other major producers into agreeing to cuts in their output.