On Thursday oil prices rebounded more than $1 to $56 a barrel, after a two-day decline, as a weakened dollar and industry spending cuts offset fears of a supply glut.
The agreement to halt months of deadly fighting in Ukraine also weighed.
March Brent futures were up $1.34 at $56 a barrel by 1134 GMT (06:34 a.m. EST), following a 3 percent loss in the previous session that saw prices break below $54 at one point.
US March crude futures rose $1.34 at $50.18, after falling more than 2 percent in the previous session, says Reuters.
Volatility in the oil market has reached the highest level since the financial crisis, with prices fluctuating in a wide range in February following the near 60 percent crash between June and January.
The dollar fell 0.33 percent against a basket of currencies. A weaker greenback makes dollar-priced commodities cheaper for holders of other currencies.
"The dollar is weaker against all the commodities at the moment," said Michael Hewson, chief analyst at CMC Markets, quoted by Reuters.
"We saw a heavy selloff in commodities yesterday and I think that's why we're getting a little bit of a rebound in oil prices on the back of that."
On Thursday French oil major Total said that it would increase cuts to operational costs
to $1.2 billion this year while spending 30 percent less on exploration,
to cope with weaker oil prices.
U.S. crude stocks rose to a record weekly high last week, while gasoline stocks increased and distillate inventories fell, data from the Energy Information Administration showed on Wednesday.
Market players have been torn between early signs lower prices will eventually curb production and indications the market will remain oversupplied in the first six months of this year.
"(The rise in prices) is quite surprising," said Carsten Fritsch, an analyst at Germany's Commerzbank. "Prices have dropped sharply in the last two days so it may be a bounce back from that, but the decline was more than justified."
