Traders said the lower prices were a result of an improving supply outlook.
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U.S. West Texas Intermediate (WTI) futures were also 2.3 per cent higher, up $1.06 at $47.39 a barrel.
International Energy Agency chief Fatih Birol also downplayed the impact of Brexit on global oil demand.
Global oil benchmark, Brent crude, traded sharply lower on Monday, extending its declines following Britain’s vote to exit the European Union on Thursday.
USA crude inventories dropped to 526.6 million barrels, the lowest since the week ended March 11, the Energy Information Administration said.
The biggest increase in June, 150,000 BPD, came from Nigeria, where output had fallen to its lowest in more than 20 years due to militant attacks on oil facilities, due to repairs and a lack of major new attacks since mid-June.
After rising back above $50 per barrel during Asian trading hours, Brent crude oil futures were at $49.96 at 0649 GMT, up 25 cents from their last settlement.
“After the bloodletting across energy commodities, equities and various currencies in recent days, today is the day we have a relief rally, with markets seeing an inevitable rebound”, said analyst Matt Smith of ClipperData.
Last week, a report from the American Petroleum Institute (API) once again showed a sharp decline in US crude inventories.
Crude prices had their biggest quarterly gain in eight years thanks to the easing of the global supply glut, triggered by falling USA reserves and supply disruptions. The more-active September contract fell $1.61, or 3.1 percent, to $49.71 a barrel.
WTI for August delivery settled up $1.52 at $47.85 a barrel on the New York Mercantile Exchange. It was also updated to reflect US oil settled at $48.33 a barrel, down 3.1 percent, or $1.55.
Late Tuesday, the American Petroleum Institute (API) released its weekly report that showed USA crude inventories fell by 3.9 million barrels in the week to June 24, far more than the 2.4 million barrels expected by analysts.
Combined oil output was about 285,000 barrels per day in the first four months of the year, with natural gas output at 48.5 million cubic metres (mcm) per day.
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“If sustainable, this ceasefire would pave the way for higher output, with the government optimistically aiming for a return to normal production by end-July”, Goldman Sachs said, although it added that there was a risk of attacks resuming.
