Oil rebounded from a six-month low early on Tuesday on bargain hunting, as markets turned broadly lower a day earlier on fears the United States may be poised for a recession.

West Texas Intermediate (WTI) crude oil for April delivery was last seen up US$0.81 to US$66.84 per barrel after closing on Monday at the lowest since Sept. 10. March Brent crude was up US$0.87 to US$70.15.

Even including the early rise, oil prices have dropped nearly 7% since the start of the year and are 16% under WTI's 2025 high of US$80.04 set on Jan. 15.

The weak pricing comes as OPEC+ sticks with a plan to return 2.2-million barrels of production cuts to markets in 18 monthly tranches beginning in April, while the U.S. and Chinese economies slow.

"Traders have been spooked by economic concerns triggered by Trump's aggressive tariffs focus, as well as increased production from OPEC+, and weakening demand in China.," Saxo Bank noted.

Tuesday's rise also come a day after U.S. stock markets tumbled on recession fears, with the Dow Jones Industrial average shedding 2.1% and the Nasdaq Composite Index losing 4%. However, markets have been weak for much of the year as U.S. President Donald Trump takes a helter-skelter approach to tariffs on the largest U.S. trading partners, while the U.S. government could shut down in days if Congress fails to agree on a funding bill.

"These are very early days in his second 4-year tenure but the results of (Trump's) 2 months in office are ominous. Consumer confidence falls, and inflation and unemployment expectations are on the ascent. Credit card delinquencies are at a 13-year high. According to the Budget Lab at Yale and as reported by the FT, the proposed tariffs will push the effective US rates to the highest level for more than 80 years and it reckons that rising consumer prices it would entail will cost up to $2,000 per household" PVM Oil Associates noted.