Brent crude futures were up $1.17, or 1.51%, at $78.76 a barrel, while S West Texas Intermediate crude futures were up $1.62, or 2.26%, to $73.82 by 10:42 CST (1642 GMT).
The market tumbled earlier in the session after a New York Federal Reserve Bank manufacturing survey showed a third month of declines in new orders, which could be a sign of weaker demand for oil in the coming year.
Global stock markets and bond yields react to slower-than-expected U.S. consumer price growth, indicating Federal Reserve success in curbing high inflation.