Oil prices edged up on Tuesday after U.S. crude broke below $40 per barrel the previous session, but traders said fuel markets continued to be dogged by excess production.
U.S. West Texas Intermediate (WTI) crude was at $40.15 a barrel at 0433 GMT, up 9 cents from its last close after dipping below $40 for the first time since April the previous session.
International Brent crude oil futures were trading at $42.34 per barrel, up 20 cents from their last close.
Despite the slightly higher prices on Tuesday, oil market data imply bearish market conditions.
Industry data shows that the global oil rig count for new production edged up in June for the first time this year, rising by two to 1,407, largely thanks to an uptick in U.S. drilling.