OPEC approved a Saudi plan to scrap allocating fixed production quotas to member countries in December 2011 and introduced output ceiling of 30 mb/d which does not specify quotas.
Like most other commodities, crude oil is priced in the USA currency, making it cheaper for large consumers like China to buy whenever the dollar weakens.
The IEA said in its February Oil Market Report that it expects global oil demand growth to "ease back considerably" this year to 1.2 million barrels per day, down from a five-year high of 1.6 million bpd in 2015.
Crude futures in NY trading were up more than 10 per cent around 1730 GMT, a day after United States prices tanked towards 13-year lows.
"Swollen crude inventories in the USA are putting increased downward pressure on the price of WTI, increasing its differential to the worldwide benchmark Brent", BMI Research said in a note.
Further weighing on prices on Tuesday, the US Energy Information Administration (EIA) lowered its 2016 oil demand growth forecast to 110,000 barrels per day (bpd) from a growth of 160,000 bpd previously.
Crude oil prices jumped as much as 2 percent in early Asian trade on Tuesday, shrugging off big drops in Japan's stock market and eroding some of the previous session's losses that were driven by festering concerns about global oversupply.
Oil prices fell to their lowest level in more than 12 years as crude stockpiles at the delivery point for NY futures hit record highs, Bloomberg reported.
With a shortfall of 250,000 barrels per day, Nigeria's oil revenue target fell by $7.5 million per day (at $30 per barrel), translating to $232.5 million in January.
It noted that the Organization of the Petroleum Exporting Countries (OPEC) was chiefly responsible for the oversupply, adding that Saudi Arabia, Iraq and Iran - which has just seen nuclear-linked sanctions lifted - had "all turned up the taps" in January. That has yet to happen, despite increasing talk of it in recent month.