Oil prices rebound after heavy sell-off

Oil prices bounced on Tuesday as traders bought the dip after sharp decline.

The US energy Information Administration (EIA) will release Wednesday the inventories data of last week. Traders expected the stockpiles to expand for the third straight week, Xinhua news agency reported.

Oil markets were cheered by gains in the US stocks market on Tuesday.

Traders kept a close eye on the Federal Reserve's two-day policy meeting scheduled to begin on Wednesday. Some analysts thought the recent soft data could give the Fed an excuse to postpone rate hikes.

The Organization of Petroleum Exporting Countries (OPEC) crude production averaged 31.54 million barrels per day (mb/d), according to OPEC monthly oil market report released Monday.

Non-OPEC oil supply is expected to grow by 0.88 mb/d in 2015, following a downward revision of around 72,000 barrels per day, due to lower-than-expected output in the US.

In 2016, non-OPEC oil supply is expected to increase slightly by 0.16 mb/d.

The West Texas Intermediate for October delivery moved up 59 cents to settle at $44.59 a barrel on the New York Mercantile Exchange, while Brent crude for October delivery increased 26 cents to close at $46.63 a barrel on the London ICE Future Exchange.