Oil Prices Rise 1% after Sinking in Previous Session

However, demand worries have been tempered by a tightening supply forecast as a result of sanctions imposed on Russia, the world's second biggest oil exporter and a critical European supplier, after its invasion of Ukraine.

"Increasing energy costs may result in demand rationing," ANZ Research said in a note. "On the other side, China's COVID-zero policy and stringent lockdowns continue to dampen demand prospects."

By 00:04 GMT, Brent oil futures had risen 96 cents, or 0.9 percent, to $108.21 a barrel.

The front-month West Texas Intermediate oil futures contract, which expires Wednesday, increased $1.19, or 1.2 percent, to $103.75 a barrel. The second-month price increased by $1.18, or 1.2%, to $103.23 per barrel.

Both benchmarks sank 5.2 percent in Tuesday's turbulent trade. [O/R]

The International Monetary Fund cut its global growth projection by almost a full percentage point on Tuesday, blaming the economic consequences of Russia's conflict in Ukraine and warning that inflation has become a "clear and present risk" for many nations.

On the supply side, the Organization of the Petroleum Exporting Countries and its allies, dubbed OPEC+, produced 1.45 million barrels per day (bpd) less than its goal in March, as Russian output started to decrease as a result of Western sanctions, according to a Reuters assessment of an OPEC+ report.

Russia produced around 300,000 barrels per day less than its aim of 10.018 million barrels per day in March, according to secondary sources.

Additional disruptions exacerbated supply worries. Libya's National Oil Corporation declared force majeure on Tuesday at the Brega oil terminal, claiming it was unable to meet market obligations.