Benchmark crude for December delivery was up 24 cents to $85.97 a barrel in electronic trading on the New York Mercantile Exchange.
Brent crude rose 32 cents to $108.17 a barrel in London.
Oil prices had fallen yesterday after the US reported an unexpectedly large increase in crude supplies.
Analysts said traders were seeing an opportunity for bargains after recent price plunges. The oil price has dropped almost 7% since closing last Thursday at $92.10.
US oil supplies grew last week by 5.9 million barrels, or 1.6%, the Energy Department said. At 375.1 million barrels, the nation's oil inventory is 11.1%above year-ago levels.
