Investing.com - Crude oil futures rose on Tuesday, one day after plunging to levels not seen since the peak of the global financial crisis in 2009, as European and U.S. equity markets rebounded from a brutal selloff in the prior session.
Germany's DAX rallied more than 2% after the open on Tuesday, while France’s CAC 40 and London's FTSE 100 were both up around 2%, one day after suffering their worst selloff in nearly seven years.
Meanwhile, U.S. stock futures gained almost 3%, signaling that Wall Street will open stronger later in the day, as markets begin to recover from sharp losses the previous day.
Global equity markets plunged on Monday as fears of a China-led global economic slowdown spooked traders and rattled sentiment.
Worries over China's economy lingered after the Shanghai Composite tumbled more than 7% on Tuesday, one day after suffering its biggest one-day drop since February 2007.
Investors continued to dump Chinese shares amid disappointment that Beijing has held back from implementing fresh measures to support stocks.
Chinese equities have lost nearly 30% over the past two weeks amid growing fears over China's slowing economy and worries that Beijing may allow the yuan to continue to depreciate.
Financial markets have been roiled since China devalued the yuan on August 11, sparking a selloff in equities, commodities and emerging-market assets.
The Asian nation is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.
On the ICE Futures Exchange in London, Brent oil for October delivery inched up 78 cents, or 1.83%, to trade at $43.47 a barrel during European morning hours.
A day earlier, London-traded Brent futures sank to $42.23, the lowest level since March 2009, before ending at $42.69, down $2.77, or 6.09%.
Global oil production is outpacing demand following a boom in U.S. shale oil production and after a decision by the Organization of Petroleum Exporting Countries last year not to cut production.
Elsewhere, crude oil for delivery in October on the New York Mercantile Exchange rose 67 cents, or 1.75%, to trade at $38.91 a barrel.
On Monday, New York-traded oil futures tumbled to $37.75, a level not seen since February 2009, before closing at $38.24, down $2.21, or 5.46%.
Market players looked ahead to fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of demand in the world’s largest oil consumer.
The American Petroleum Institute will release its inventories report Tuesday, while Wednesday’s government report could show crude stockpiles rose by 2.2 million barrels in the week ended August 21.
Meanwhile, the spread between the Brent and the WTI crude contracts stood at $4.56 a barrel, compared to $4.45 by close of trade on Monday.