West Texas Intermediate futures for March delivery jumped to $30.75 (+4.13%), while Brent crude rose to $30.65 (+4.79%) after European Central Bank President Mario Draghi hinted at policy easing in the coming months. However analysts caution that gains based on such expectations will be short-lived as the global supply glut will remind market participants of itself. Analysts also say that oil prices haven't reached the bottom yet.

More pressure is coming from Iran, which is on track to pump more crude into the oversupplied market. The National Iranian Oil Company said it had ordered to raise output by 500,000 barrels per day after the sanctions were lifted on Sunday.