Oil closed higher on Wednesday as a weaker dollar and lower U.S. crude stockpiles provided a modest bounce off six-year lows hit the previous session, when worries about China's plummeting currency and economic slowdown sank prices.
U.S. light crude oil settled up 22 cents, or 0.5 percent, at $43.30 a barrel, after gaining almost 80 cents at the session high. On Tuesday, the market fell $1.88, or more than 4 percent, to settle at $43.08 a barrel, its lowest close since March 2009.
Benchmark Brent crude oil was up 53 cents a barrel at $49.70, after a session high at $49.91.
Concerns that U.S. inventories could build again from higher crude imports and refinery outages kept a lid on the rebound. Prices rose less than 1 percent after Tuesday's 4 percent slump.
"The market needed a big drawdown to reverse the current trends and didn't get it," said Chris Jarvis, analyst at Caprock Risk Management in Frederick, Maryland.
Crude stockpiles in the United States fell by 1.7 million barrels last week, just short of market expectations for a draw of 1.8 million barrels, data from the Energy Information Administration (EIA) showed.
Gasoline inventories also fell, by 1.3 million barrels versus the 647,000 barrels forecast.