Oil steadied above $57 a barrel today, drawing support from investors' expectations for strong petrol demand this summer in the United States.
Prices have been pressured by troubles in the US housing sector that sparked concern in global stock markets about the economic health of the United States.
US crude settled on Friday at $57.11, its lowest close since the end of January.
By 9.52am GMT today, US crude was trading up 4 cents at $57.15. London Brent crude rose 26 cents to $60.56.
"Barring some very bearish economic data from the US, oil prices should recover in the coming weeks on falling US gasoline stocks amid the driving season," said Gerard Burg, analyst at National Australia Bank.
Concerns over the impact of US home owners falling behind with mortgage payments triggered a sell-off on global equity markets last week.
Investors fear the declines could presage further selling that could hurt economic growth and oil demand. Efforts by China to cool its economy have also raised concern over oil demand in the world's second biggest fuel burner.
China's central bank yesterday raised its interest rates for the third time in less than a year to put a lid on credit and investment.
OPEC ministers, who agreed last week to keep current supply restrictions of 1.7 million barrels per day in place, are keeping close watch on the global economy.
If oil prices fall sharply, the Organisation of the Petroleum Exporting Countries (OPEC) would hold an emergency meeting.
"If oil prices in international markets go down, certainly OPEC will make new decisions by holding an emergency meeting," Iranian Oil Minister Kazem Vaziri-Hamaneh said on Saturday.