Oil prices rebounded on Wednesday after having suffered steep losses in the previous session.
Brent crude futures for June delivery were up 0.7 percent at $107.99 a barrel, while U.S. crude futures for June settlement rose 0.7 percent to $102.89.
Both contracts fell more than 5 percent on Tuesday amid fears over slowing China demand.
The rebound comes as data from the American Petroleum Institute showed a drop in U.S. crude inventories of about 4.5 million barrels last week.
Also, Reuters reported that OPEC and its allies (known as OPEC+) produced 1.45 million barrels a day, below its production targets in March - largely due to the decline in the Russian crude oil output in the face of sanctions imposed by the West and some European nations.
On the demand side, there are reports of some factories returning to work after Shanghai reported no new COVID-19 infections outside quarantine areas in two districts.
Shanghai allowed 4 million more people out of their homes today as anti-virus controls that shut down China's biggest city eased.
The EIA crude oil inventory report is due later in the day.
