The Sensex is up 127.64 points or 0.5 percent at 26608.89 and the Nifty is up 39.40 points or 0.5 percent at 8061.80.
Tata Power, BHEL, Bharti, SBI and Axis Bank are top gainers while Tata Motors, Cipla and GAIL are among laggards in the Sensex.
Crude prices rose more than 3 percent yesterday as higher seasonal demand in developed economies and expectations of falling US shale production reduced the impact of a large global supply overhang. Brent crude rose above USD 64 per barrel.
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