New York's main contract, light sweet crude for November delivery, rose 71 cents to 88.52 dollars after a plunge of 6.
07 dollars to 87.81 at the close of floor trading on Monday at the New York Mercantile Exchange.
Brent North Sea crude for delivery in November rose 46 cents to 84.
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14 from a fall of 6.57 dollars to 83.68 Monday in London.
Oil futures contracts skidded along with global stock markets after a 700-billion-dollar US financial rescue package failed to calm investor nerves about frozen global credit flows, dealers said.
World oil prices first broke through the 100-dollar level at the start of the year and touched record highs above 147 dollars in July. But they have fallen sharply since then on accelerating concerns that demand is slowing as a result of the global financial crisis.