Oil prices surged as much as 4 percent on Tuesday in a technical correction and on short covering after a two-month lows hit in the previous session, traders said.
Anticipation that data later on Tuesday would show an eighth straight week of declines in U.S. crude stockpiles also boosted the market.
Brent and WTI had been up about 2 percent in early New York trading, riding on a weaker dollar and rally in global equity markets.
"The sharper move up caught everyone by surprise as there's probably short covering adding on to the technical buyback," said a crude futures broker.
Some investors and analysts said gasoline and diesel were in oversupply despite summer driving demand in the United States and that could pressure the broader petroleum complex again.
Saudi Arabia's energy minister also there were hundreds of millions of barrels of surplus crude oil in the global market, although a price above $50 a barrel was required to ensure continued investment in the space.
Oil producing group OPEC said it was optimistic of seeing balance in supply-demand next year even as it lowered its expectations for 2016 global growth due to the uncertainties caused by Britain's exit from the European Union.