(July 12 Reuters) Oil futures bounced back from two-month lows on Tuesday, helped by a weaker dollar, but a global stocks overhang and a drop in bullish bets by investors still weighed on prices.
Brent crude was $46.93 per barrel at 0853 GMT, up 68 cents or 1.5 percent from the last close. U.S. West Texas Intermediate crude was up 58 cents at $45.34 a barrel.
Saudi Energy Minister Khalid al-Falih said on Tuesday the oil industry needed a price above $50 per barrel to sustain investments but added that downward pressure would prevail because of an inventory glut.
"We need a price higher than $50 to achieve balance in oil markets in the long term," Falih told German business daily Handelsblatt."But there are still excess stocks on the market - hundreds of millions of barrels of surplus oil. It will take a long time to reduce this inventory overhang," he added.
Oil prices fell to a two-month low on Monday on renewed oversupply fears. The dollar index dropped 0.5 percent on Tuesday, helping to lift commodity prices.
Click on the link below to see the full story from Reuters: (by Dmitry Zhdannikov)