Investing.com - Oil futures reversed earlier losses to trade higher on Thursday, as sentiment was boosted amid a global stock market rally.
Crude oil for delivery in October on the New York Mercantile Exchange inched up 20 cents, or 0.43%, to trade at $46.45 a barrel during European morning hours, recovering from an intraday low of $45.65.
Most Asian markets ended higher on Thursday as strong overnight gains on Wall Street and a market holiday in China supported risk appetite.
The upbeat sentiment carried over to European markets, where Germany's DAX rallied 2% after the open, while France’s CAC 40 and London's FTSE 100 were both up around 1.5%.
U.S. stock futures also pointed to strong gains at the open, soothing investors' tattered nerves
A day earlier, Nymex oil prices rose 84 cents, or 1.85%, in volatile trade, as rallying equities on Wall Street pulled crude up from lows after futures sank on concerns about global oversupply.
The U.S. Energy Information Administration said in its weekly report Wednesday that crude oil inventories rose by 4.7 million barrels last week. Market analysts' expected a crude-stock rise of 32,000 barrels.
At 455.4 million barrels, U.S. crude oil inventories remain near levels not seen for this time of year in at least the last 80 years.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for October delivery tacked on 14 cents, or 0.28%, to trade at $50.64 a barrel. On Wednesday, Brent futures rallied 94 cents, or 1.9%.
Crude oil prices have been under heavy selling pressure in recent months amid concerns over a growing glut in world markets.
Global oil production is outpacing demand following a boom in U.S. shale oil production and after a decision by the OPEC last year not to cut production.
Mounting concerns over slowing growth in China combined with worries that the Federal Reserve will hike rates at its next policy meeting in September also weighed.
Later in the session, the U.S. was to release data on the trade balance as well as weekly figures on jobless claims, while the ISM is to report on service sector growth.
Investors were also looking ahead to Friday’s U.S. jobs report for August, which could help to provide clarity on the likelihood of a near-term interest rate hike.
The timing of a Fed rate hike has been a constant source of debate in the markets in recent months.