Brent oil prices jumped above $62 a barrel on Thursday as a number of traders predicted the rout could be nearing an end.
Benchmark Brent fell to a five-year-low of $58.50 this week, taking the overall fall in prices for the year close to 50% from its June high.
With producers across the world, including the Opec group and Russia, signalling their intention to maintain supplies in the immediate future, the price of oil has plummeted in recent weeks.
With prices falling, a number of exploration projects planned by major companies have been put on hold.
US oil major Chevron's plans to drill in the Arctic have been put on ice, while Canadian producers have slashed investment budgets for 2015.
Meanwhile industry experts in the UK warned on Thursday that the UK oil industry was "close to collapse" as a price of $60 a barrel makes it impossible to make money.
A range of factors have contributed to the falling price, including a hike in supplies as US shale producers supplied the American market, as well as weak demand from a global economy struggling to shake off the effects of the 2009 financial crisis.