Oil prices rose more than 2 percent on Monday after China moved to boost its slowing economy and Saudi Arabia pledged to work with other crude producers to limit market volatility, developments that fed hopes the oil selloff would end.
A Reuters survey also indicated the Organization of the Petroleum Exporting Countries pumped less crude this month than in January, boosting market sentiment.
"Crude and product prices have the ability to stabilize for a couple of months as long as storage constraints are not forcing supply to be backed up toward the producing fields," said Jim Ritterbusch of energy markets consultancy Ritterbusch & Associates in Chicago.
Brent crude's front-month futures contract was up 85 cents at $35.95 a barrel by 12:07 p.m. EST (1707 GMT), ahead of its expiry. Brent's more-active second month rose more than $1.20 a barrel at the session high.
U.S. crude's front-month rose by 70 cents to $33.48 a barrel.
Oil prices remain down about 70 percent from mid-2014 highs above $100 a barrel. A steady rebound over the past two weeks has some traders and investors thinking the market may have found a near-term bottom.
Even so, a Reuters oil price poll said crude will likely average at just over $40 a barrel this year.
China, the world's largest oil importer, on Monday cut its reserve requirement ratio, the amount of cash banks must hold as reserves, for the fifth time in a year. The move boosted risk appetite across financial markets.
Saudi Arabia, which is working with OPEC members Venezuela and Qatar and non-OPEC producer Russia on a plan to freeze oil output at January highs, said it wanted stability in crude prices. Iran remained a stumbling block, with its target to raise output to reach pre-sanction export levels.
The Saudi cabinet said in a statement it "will always remain in contact with all main producers in an attempt to limit volatility and it welcomes any cooperative action."
Banks such as Morgan Stanley and Barclays say without an outright cut in output, a production freeze will not boost prices much. "We think what it does represent, however, is an exercise in building broader cooperation between producers, and thereby is likely to prove a litmus test for building trust," Barclays said.
The Reuters survey on OPEC output indicated the group's production fell by 280,000 barrels per day (bpd) from January.
Countering that, Iran said on Monday its oil exports rose over the past month, climbing as high as 1.75 million bpd.
(Additional reporting by Dmitry Zhdannikov in London; Editing by David Goodman, Greg Mahlich and David Gregorio)