Brent crude, which fell 24% in the previous session, touched $15.98 a barrel on Wednesday, hitting its lowest since June 1999. By 1120 GMT, it had recovered to trade 1.2% up at $19.57.
Saudi Arabia's benchmark index rose 0.7%, with Al Rajhi Bank gaining 1% and oil giant Saudi Aramco closing 1% higher.
Aramco has chosen HSBC and Japan's Sumitomo Mitsui Banking Corporation (SMBC) to coordinate talks with other banks for a loan of about $10 billion that the oil giant plans to seek, Reuters reported, citing two sources close to the matter.
The financing would help the company back its acquisition of a 70% stake in Saudi Basic Industries Corp (SABIC) from Saudi Arabia's Public Investment Fund. SABIC was down 0.9%.
Dubai's main share index gained 2%, driven by a 6.9% jump in property developer Emaar Development and a 1.5% rise in lender Emirates NBD. Elsewhere, Emirates Integrated Telecommunication (du) was up 1.8% after reporting quarterly results. The Abu Dhabi index advanced 3.3%, boosted by a 3.8% rise in the country's largest lender First Abu Dhabi Bank.
Qatar's index ended up 2.1%. Qatar Islamic Bank added 3.4% and Qatar National Bank was up 2.4%.
Outside the Gulf, Egypt's blue-chip index traded down 0.8%, as tobacco monopoly Eastern Company slid 3.8% and Commercial International Bank fell 0.5%.
Egypt's economy is expected to grow 3.5% in the fiscal year starting in July, according to a Reuters poll, down from the 5.9% that economists had been predicting only three months earlier, before the coronavirus pandemic swept the world.