New York's main contract, West Texas Intermediate for delivery in August, rose 92 cents to $91.94 a barrel in morning trade after plummeting $4.39, or 4.6%, yesterday in New York.
Brent North Sea crude also for August added 64 cents to $107.90 after plunging $6.95, or 6.0%.
The IEA said it decided to release 60 million barrels of crude to make up for lost Libyan output, as the country is in the midst of a revolt, and to give the global economy relief from high energy costs.
Victor Shum, a Singapore-based analyst with Purvin and Gertz energy consultancy, said investors viewed the EIA decision as a stimulus package for the global economy.
"The bounce this morning is due to that kind of thinking in the markets -- that the move by the IEA will actually stimulate the global economy," he said.
"With lower oil prices, the (global) economy will have a better chance to get stronger. Along with this, the oil demand will also get a boost."
The Paris-based IEA's chief economist Fatih Birol said in Singapore on Tuesday there was is a "strong potential" that persistently high oil prices could derail the global economic recovery.
Birol said the average price of oil this year was $110, much higher than the $90 seen in 2008, the year that crude hit a record above $147 before the onset of the global recession.