West Texas Intermediate futures for October delivery advanced to $38.81 (+1.49%), while Brent crude rebounded to $43.00 (+0.73%) after sharp losses amid ongoing collapse in China's equity markets in the previous session. Nevertheless continued declines in Chinese stocks kept investors concerned and both crudes stayed close to Monday's lows of $37.75 and $42.23, respectively, weakest since early 2009.

Meanwhile oversupply and robust production persisted. At the same time weak economic data from China (one of the key consumers of oil) and signs of capital outflows may harm demand.