West Texas Intermediate futures for September delivery rebounded to $45.46 (+0.64%), while Brent crude climbed to $49.68 (+0.32%) after yesterday's sharp declines, which were triggered by weak U.S. data.

A report by the Institute for Supply Management showed that activity in the industrial sector of the U.S. economy weakened sharply despite forecasts of a slight improvement. The ISM manufacturing index fell to 52.7 in July from 53.5 reported previously. The index was expected to come in at 53.6.

Intensive oil production in OPEC and the U.S. continues to keep prices under pressure.