The rebound reflects lingering concerns about an invasion of Ukraine that threatens to disrupt Russia’s vast energy supplies at a time when global supply is already failing to keep up with demand.
“People came to their senses. They hoped for the best but there is no proof on the ground that pulling back is a reality,” said Robert Yawger, vice president of energy futures at Mizuho Securities.
US oil hit a seven-year high of $95.82 a barrel on Monday on Russia-Ukraine fears. In recent trading, oil was up 2.7% to $94.57 a barrel. Brent crude, the world benchmark, gained 2.6% to $95.75 a barrel.
The US stock market also gave up some of its sizable gains from Tuesday, with the Dow falling 225 points, or 0.6%, and the Nasdaq losing 1%.
Yawger said those comments from Biden and NATO are renewing concern in the market about a conflict.
“Investors justifiably believe the president of the largest democracy on the planet and the largest military alliance in the world, instead of the president of a dictatorship,” Yawger said.
Natural gas is also rising sharply, with futures jumping nearly 7% to $4.60 per million BTU.