Oil prices ticked up on Tuesday on apparent bargain hunting, recovering some ground from the previous day's plunge.

But gains were limited as investors remained cautious ahead of key policy decisions by central banks and on weak economic data from China.

Brent crude futures climbed 80 cents, or 1.1%, to $72.64 a barrel by 0825 GMT. U.S. West Texas Intermediate (WTI) crude was at $67.64 a barrel, up 52 cents, or 0.8%.

Brent's six-month backwardation, a market structure whereby shorter-dated futures trade above longer-dated ones, has fallen to its lowest since March at around $1.10, indicating faltering market confidence in demand outstripping supply over the year.

Both benchmarks fell around $3 a barrel on Monday after analysts highlighted rising global supplies and concerns about demand growth just ahead of U.S. inflation data due at 1230 GMT and a U.S. Fed monetary policy meeting concluding on Wednesday.

Source : Reuters