The Brent crude price climbed 8 per cent in one day to $35.43 a barrel and is now trading up 1.1 per cent, sending Asian markets higher.
The Hang Seng index is up 1 per cent to 19,183.09 in afternoon trading, while the Shanghai Composite index rose 1.5 per cent to 2,781.02.
Shares in mining companies the FTSE have also bounced back.
Anglo American is leading the way, up 7.7 per cent to 294.7p, closely followed by Glencore, which has climbed 5.8 per cent to reach 90.9p.
BHP Billiton has also responded positively as the oil price jumped, with shares up 5 per cent to 675p.
Chris Weston, market analyst at IG Group, called it “the most amazing one-day moves in oil we will ever see, with US and Brent oil rallying 9 per cent and 8 per cent” from the previous day’s close.
He added: “With oil prices rallying so aggressively and the US dollar under such strong pressure, it could tell a lot about the psychology of this market if we do see money managers really coming back into stocks on volume. It could provide a real sense that people don’t want to get left behind.”
