Oil is making a comeback

The price of oil is making a comeback this morning.

After hitting 14-year lows on Thursday, prices of both UK Brent and US crude have made gains so far on Friday.

Brent was up 1.69% at $34.29 (£23.47) at 8:35 a.m. GMT (3:35 a.m. ET), and West Texas Intermediate crude was up just shy of 1.2% to $33.70 (£23.06).

Both benchmarks recovered substantially after hitting levels not seen since 2002 on Thursday.

This is the state of Brent crude this morning:

And here’s how WTI looks:

Why has oil started to recover on Friday morning?

The crucial reason seems to be that China’s stock markets finally made gains on Friday, and tempered the crazy losses they have seen all year so far. That’s not so say that the markets in the country weren’t a bit crazy, and as reported by Business Insider Australia’s David Scutt, the Shanghai Composite share index swung wildly all day.

But, the index did eventually close the day in positive territory, ending up by 1.98%, its biggest percentage gain since December 14.

Oil has also been helped by the small gains seen by the Chinese yuan, which is currently trading up 0.07% against the dollar to 6.5880.

Today’s price rises may just be a minor rebound however. Tensions in oil rich nations like Saudi Arabia and Iran are still at an all time high, and despite today’s gains, equity markets in Asia are still incredibly jittery and unpredictable right now.

Oil has already briefly rebounded several times during its current slump, before returning to continued losses quickly afterwards.

Will the recovery continue? As with everything in the markets right now, nobody knows.

NOW WATCH: Jim Cramer’s inspiring words on how to come back from a beatdown

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.