The recent declines in oil prices were "excessive" given that the oil market remains in a deficit, Goldman Sachs said, adding that it reiterates its $85-per-barrel forecast for the fourth quarter.
Petroleum futures and options were hit by heavy profit-taking last week as speculation about a potential release of strategic oil reserves and intensifying concerns about the state of the global economy hit sentiment.
Oil prices rose nearly 2% to their highest in more than two years on Tuesday, buoyed by expectations demand will recover rapidly in the second half of 2021.
Saudi Arabia held its position as the biggest supplier of crude oil to China for an 11th month in a row in October, with volumes up 19.5% from a year ago, customs data showed on Sunday.
Oil prices settled higher on Tuesday, as lingering fears of gasoline shortages due to an outage at the largest U.S. fuel pipeline system after a cyber attack brought futures back from an early drop of more than 1%.