Both Brent and West Texas Intermediate contracts shed 5% overnight before staging a minor recovery.
Investors were disappointed by Opec's decision for supply cut extension.
Russian and Saudi oil ministers broker deal between 24 producers to extend their ongoing output cuts.
London-listed budget Wizz Air was the best performer in the second tier after reporting record profit, up 28% to €246m.
UK GDP data revised down to show economy grew only 0.2% in the first three months of the year.
Khalid Al-Falih also said he was not concerned about US shale production and described it as necessary.
The Shanghai Composite surged by 1.34% despite China's recent downgrade by Moody's.
The S&P 500 posted a record close at 2,404.39.
Most crude producers want production cuts to be extended for 6 to 9 months but Kuwait wants more.
An influential oil producers' committee has proposed rolling over ongoing output cuts.
The High Court has adjourned the RBS case for a month to allow further talks between the bank and its shareholders.
Federal Reserve will release minutes of its latest meeting tonight.
Ineos is buying yet another North Sea oil and gas business to continue its operational expansion in the region.
The Nikkei surged by 0.66% while the Hang Seng and Shanghai Composite registered minor downturns.
Tuesday's gains come less than a week after US stocks posted their worst daily decline in months.