Oil prices bounced back on Tuesday, but are near 6.5 year lows due to global concerns over weak economic activity in China.

Brent increased $1.20 to $43.89, while the US crude, also known at West Texas Intermediate or WTI, edged up $1.10 at $39.34 a barrel, Reuters reported.

HSBC Asian Economics Research co-head Frederic Neumann told the news agency: "China’s economy continues to slow and the [US] Fed may still hike rates before the end of the year.

"The weak economic activity in the world’s top commodity consumer will not lead to a global recession."

"That puts further cracks into the two main growth pillars for the world economy of recent years; Chinese demand [including commodities] and easy money."

According to shipping sources, in tanker traffic the number of very large crude carriers (VLCCs) fixed to arrive in Asia slipped from 105 in June to 94 in July, and 83 in August.

Goldman Sachs said that the weak economic activity in the world’s top commodity consumer will not lead to a global recession.

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Oil markets in Asia have been suffering from oversupply, which started bringing down prices in June 2014.

In a bid to overcome competition from US shale producers, the Organization of the Petroleum Exporting Countries is producing record volumes.