Crude futures, ravaged by crushed global demand due to the coronavirus pandemic, surged Thursday on hopes of US help to end a Saudi-Russia price war that contributed to the slump.

Benchmark contracts Brent North Sea and West Texas Intermediate soared more than 10 percent before paring gains somewhat.

Around 1415 GMT, WTI was up 8.6 percent at $22.05 per barrel and Brent showed a gain of 6.3 percent to $26.29.

Both benchmarks fell to their lowest levels in 18 years this week. WTI slumped below $20, having lost around 65 percent of its value in the first quarter.

Prices bounced back Thursday on "news that China is beginning its state stockpiling purchases", said Commerzbank analysts in a client note.

"What is more, US President Donald Trump made optimistic remarks..., claiming that Russia and Saudi Arabia would soon approve a new production cut agreement."

Analysts said however that the market remained hobbled by sliding demand because of business shutdowns, the grounding of air travel and other social distancing measures put in place to contain the deadly COVID-19 outbreak.

Helping to ease the supply glut, Beijing has called on authorities to buy up the commodity to fill its reserves.

China's move has helped to boost prices at a time when the oil market experiences an extremely rare situation.

Some crudes are in fact being priced negatively, meaning producers are paying customers to take it off their hands.

Despite evaporating demand, production has continued apace as Russia and Saudi Arabia vie for market share, with the excess oil struggling to find space in overstretched storage facilities around the world.

This has resulted in some oils, including Wyoming Asphalt Sour, turning negative on price.

Western Canadian Select had earlier this week traded at "four to five dollars. With the transport cost it means that the price is negative", Per Magnus, head of analysis at Rystad Energy, told AFP.

- Price war -

Hopes of a sustained rebound for all oil contracts have meanwhile materialised after Trump on Wednesday said he would meet US energy executives this week to discuss plummeting oil values.

Regarding the price war, Trump said he had spoken to Moscow and Riyadh, adding:

"I think that they will work it out over the next few days."

It came despite Saudi Arabia, the world's biggest crude exporter, on Wednesday ramping up its price war with Russia, boosting crude oil supply to record levels.

State giant Aramco offered 18.8 million barrels on a single day.

Saudi Arabia last month launched a vicious price war, after OPEC and non-member Russia failed to clinch an output-cutting deal to adapt to lower oil demand due to measures to slow the spread of the deadly coronavirus.

"This shock is extremely negative for oil prices and is sending landlocked crude prices into negative territory," Goldman Sachs said on Monday.

US shale oil producers, which had made the country self-sufficient, have been particularly hard hit by diving prices.

ANZ Bank however said that US prices were being bolstered also by reports that the US energy department may rent space in the country's emergency oil reserves to local producers.

"This would help drillers store excess crude," it said.

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