Oil recovered to just above $50 a barrel on Tuesday after touching a six-month low in the previous session.
Observers said that the six-month low was due to high global production and concern over the economic outlook in China.
The bounce came as a weaker dollar took the pressure off commodities which tumbled on Monday, with a global commodities price index sinking to a 12-year low.
Brent crude was up 80 cents and U.S. crude gained 71 cents to $45.88.
Brent fell to $49.36 at one point on Monday, its lowest since Jan. 30.
“I think we will stabilise around current levels,” said Olivier Jakob, Head of Swiss oil consultancy Petromatrix.
“You can never exclude a further correction, but I think we are in the last 5 dollars rather than the next 15 dollars.”
Crude has come under pressure from mounting signs of ample supply and a weakening of the demand outlook.
Brent fell 18 per cent in July, while U.S. crude’s 21 per cent decline was its biggest monthly decline since the 2008 financial crisis.
