Oil is hanging onto yesterday's big gains

Oil is creeping higher on Wednesday morning, after prices exploded upwards late on Tuesday.

Crude leapt over 4% on Tuesday after a Reuters story raised expectations that the OPEC nations will agree production cuts. Reuters reported that Saudi Energy Minister Khalid al-Falih will travel to Qatar this week to meet officials from other OPEC countries on the sidelines of an energy forum.

Michael Hewson, chief market commentator at CMC Markets, says in an email on Wednesday morning: "Reports that OPEC members were due to meet in Doha this Friday to try and get an agreement on a production freeze or cap triggered a wave of short covering after several days of declines, and also helped pull US markets collectively higher with the Dow once again posting a new record close."

The oil rally shows no signs of abating on Wednesday, with both UK Brent and US West Texas Intermediate posting small gains in early trade in London.

Here is how Brent looks at 7.10 a.m. GMT (2.10 a.m. ET):

And here's WTI at the same time: