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Brent crude rose $1.88, or 2.6%, to $74.38 a barrel by 1128 GMT.
U.S. West Texas Intermediate was up $1.89, or 2.8%, at $70.45
after four days of declines that sent the contract to lows last
seen in late 2021.
The Brent benchmark was on track to finish the week with a
decline of about 6.5%, while WTI was set for a 8% loss, despite
heading for their biggest daily percentages rises in a month.
"Rather than underlying fundamentals, the selling frenzy over
the past week has been driven by worries about demand linked to
recession risks and the strain in the U.S. banking sector," said
PVM oil market analyst Stephen Brennock.
"The upshot is that there is a big disconnect between oil
balances and oil prices."
Commerzbank analysts also said oil demand concerns were
overblown and expect a price correction upward in coming weeks.
The dollar weakening against other currencies this week helps
support oil, making it cheaper for holders of other currencies.
Worries over a U.S. regional banking crisis persisted after
PacWest Bancorp said it planned to explore strategic options.
In China, factory activity contracted unexpectedly in April as
orders fell and poor domestic demand dragged on the sprawling
manufacturing sector.
However, expectations of potential supply cuts at the next
meeting of the OPEC+ producer group in June have provided some
price support, said Kelvin Wong, a senior market analyst at
OANDA in Singapore.
Traders are focused on the release of U.S. employment data at
1230 GMT and comments on monetary policy from St. Louis Fed
President James Bullard and Minneapolis Fed President Neel
Kashkari at the Economic Club of Minnesota.
Investors now broadly expect the Fed to pause rate hikes at its
June policy meeting.
(Reporting by Shadia Nasralla; Additional reporting by Andrew
Hayley in Beijing; Editing by David Goodman and Jan Harvey)
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