NEW YORK (AP) — Oil prices are surging a day after they plunged 25% amid a price war between producers Saudi Arabia and Russia, which are pulling more oil out of the ground even though demand is falling due to the coronavirus.

Benchmark U.S. crude climbed $3.23, or 10.4%, to settle at $34.36 a barrel Tuesday. Brent crude, the international standard, rose $2.86, or 8.3%, to settle at $37.22 a barrel.

The pickup in oil drove energy company shares broadly higher. Marathon Oil led the sector, vaulting 16.5% in afternoon trading a day after dropping nearly 47%.

Occidental Petroleum gained 11.6% after the company slashed its quarterly dividend to 11 cents per share from 79 cents and said it will cut capital spending by about 30% this year. The company's shares dropped nearly 70% in the previous two trading sessions.