U.S. crude was up by 20 cents, or 0.80%, at $26.48 a barrel, having dropped nearly 8% in the previous session.
Brent crude was up by 54 cents, or 1.56%, at $33.83 a barrel after falling more than 3% on Monday.
The world’s main oil producers including Saudi Arabia and Russia are likely to agree to cut output at a meeting on Thursday, although that would also depend on the United States doing its share, sources told Reuters.
But the threat of a major recession hangs over the market due to the halt of much economic activity as a result of the coronavirus pandemic, with half the global population under some form of lockdown or social distancing measures.
“Despite the prospect of a massive Saudi Arabian-led production cut, the price of oil has remained low in recent weeks amid a coronavirus-related collapse in demand,” Capital Economics said in a note.
“We expect energy prices to hover around current levels until economic activity recovers,” it said.
Oil prices slumped on Monday after Saudi Arabia and Russia delayed a meeting to agree on output cuts till Thursday. Analysts estimate there is a supply overhang that equates to about a quarter of global consumption before the coronavirus outbreak.
A global recession that economists in a Reuters poll say is under way will likely be more serious than expected a few weeks ago due to the viral outbreak, the latest polling showed.