Oil prices rebounded from the recent drop. Concerns over the global oil oversupply and concerns over a slowdown in China's economy weighed on oil prices. Chinese stocks slid more than 6% on Tuesday. Market participants speculate on that China's central bank could devaluate the yuan again.

Market participants are awaiting the release of U.S. crude oil inventories data. The American Petroleum Institute (API) is scheduled to release its U.S. oil inventories data later in the day, and U.S. oil inventories data from the U.S. Energy Information Administration is expected on Wednesday.

WTI crude oil for September delivery rose $42.43 a barrel on the New York Mercantile Exchange.

Brent crude oil for September decreased to $48.54 a barrel on ICE Futures Europe.