Investing.com - Oil prices were higher in European trade on Tuesday, bouncing off the prior session's two-month low as investors looked ahead to a monthly report from the Organization of Petroleum Exporting Counties due later in the session to gauge global supply and demand levels.
On the ICE Futures Exchange in London, Brent oil for September delivery tacked on 41 cents, or 0.89%, to $46.66 a barrel by 07:55GMT, or 3:55AM ET.
A day earlier, London-traded Brent futures sank to $45.90, the lowest since May 11, amid easing concerns over supply outages in Africa and the Middle East.
OPEC’s official June report is expected to be released later Tuesday. It could show production rose by 300,000 barrels a day last month to a nearly eight-year high of 32.7 million barrels a day, due to steadily increasing output from Libya, Nigeria, Saudi Arabia and Iran.
Elsewhere, crude oil for August delivery on the New York Mercantile Exchange inched up 30 cents, or 0.67%, to $45.06 a barrel.
On Monday, New York-traded oil futures sank to $44.42, a level not seen since May 11, amid signs of an ongoing recovery in U.S. drilling activity.
According to oilfield services provider Baker Hughes, the number of rigs drilling for oil in the U.S. increased by 10 last week to 351, marking the fifth increase in six weeks.
The renewed gain in U.S. drilling activity fueled speculation that domestic production could be on the verge of rebounding in the weeks ahead, underlining worries over a supply glut.
Market players now looked ahead to fresh weekly information on U.S. stockpiles of crude and refined products. The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles fell by 3.2 million barrels.