Oil rebound slightly after sharp losses

Oil prices rose Tuesday, a day after sliding on the strong dollar, but fears over the supply glut kept gains in check before a key producers' meeting next month.

The market had tumbled Monday after Federal Reserve boss Janet Yellen indicated a possible US rate hike this year, sending the greenback rallying and making crude more expensive for holders of other currencies.

Investors however moved in to pick up bargains on Tuesday.

At around 1300 GMT, US benchmark West Texas Intermediate for delivery in October was up 33 cents at $47.31 a barrel.

Brent North Sea crude for October won 18 cents to $49.44 a barrel compared with the close on Monday.

Attention now turns to the release of US jobs data Friday, which should give an idea about the Fed's plans for rates, before Russia and OPEC hold talks in Algeria to discuss the oversupply crisis that has dented prices for years.

"It's probably natural to see some bounce after yesterday's percent fall," said Bernard Aw, market strategist at IG Markets in Singapore.

"As oil approaches the upper end of the $40-50 range, we need confirmation that oil majors are heading towards an agreement to stabilise the market for oil prices to push higher."

The commodity has rallied in August on hopes Moscow and the Organization of the Petroleum Exporting Countries will find an agreement to limit production.

But there are lingering worries about the chances of a deal actually being made.

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