On Tuesday, the Brent futures rebounded as investors returned to the market to find cheaper offers, after a collapse in prices by more than 5% to a six-month low in the previous session.
On London's ICE, Brent crude for September delivery rose 43 cents, or 0.88%, to get traded at $ 49.96 a barrel during European morning session.
A day earlier the price of Brent crude oil fell to $ 49.36, the lowest level since January 27, and recovered to $ 49.52, down $ 2.69 or 5.15%, as lingering concerns over the glut of the world oil market is putting pressure on the price dynamics.
In July, the price of Brent fell $ 11.39, or 18.6%, amid concerns that the resumption of Iran's oil exports will increase the already excessive supply.
Iran and the six world powers have reached a long-awaited agreement whereby Tehran sanctions will be lifted in exchange for limiting its nuclear program. Iran has in its reserves 30 million barrels of oil for export, as reported.
The reported record levels of oil exports from Iraq and increased production in Saudi Arabia also contributed to price losses.
The oil offer on the world market is still ahead of demand due to the boom in shale oil in the US and after the adoption of OPEC's decision not to cut production.
On the New York Mercantile Exchange, WTI crude oil for September delivery rose 58 cents, or 1.3%, to get traded at $ 45.76 a barrel. On Monday, oil fell in price to $ 45.08, the lowest level since March 19, and closed trading at $ 45.17, rising $ 1.95, or 4.14%.
US crude rebounded from four-month low the previous day, as market participants await the publication of weekly data on oil and petroleum products in the United States to gauge the strength of demand in the world's largest oil consumer.
Later on Tuesday, the American Petroleum Institute will release its report on stocks of raw materials, while a government report on Wednesday may show the reduction of oil reserves by 0.4 million barrels for the week ending July 31.
In July, the price of WTI crude oil tumbled $ 12.22, or 21.24%, the largest monthly decline since October 2008, as fears of record high oil production in the United States are putting pressure on commodity prices.
Meanwhile, the spread between the cost of contracts for Brent and WTI was $ 4.20 per barrel compared with $ 4.35 at the close of trading on Monday.