By Barani Krishnan
NEW YORK (Reuters) - Global crude prices advanced from multimonth lows on Tuesday after stock market gains in No. 2 oil consumer China, but the rebound is unlikely to have traction due to weakening demand and growing oversupply, traders and analysts said.
Brent, the world benchmark for oil, and U.S. crude rose between 1 and 2 percent after a 5 percent rout on Monday triggered by weak factory activity in China.
While the overnight rise in Chinese equities - and short-covering that normally follows a huge selloff - aided the recovery, the widening gulf between fuel demand and forthcoming crude supply could reverse any positive sentiment, traders said.
The U.S. Energy Information Administration, the Paris-based International Energy Agency and the Organization of the Petroleum Exporting Countries will give their monthly updates next week on barrels per day of oil needed by the market versus in storage or under production.
OPEC output reached the highest monthly level in recent history in July, a Reuters survey found.
"The bigger picture still points to a retest of 2015 lows" in prices, Matt Smith, director of commodity research at New York energy database ClipperData, said, citing next week's "triumvirate of monthly oil-specific reports" as the likely catalyst for that.
Brent was up 48 cents at $50 a barrel by 11:30 a.m. EDT (1530 GMT). It hit a six-month low on Monday, coming within cents of striking its 2015 low of $49.19.
U.S. crude showed an 80-cent gain to $45.97, after plumbing a four-month bottom of $45.17l, in the previous session, about $3 above the year's low.
Crude has come under pressure from mounting signs of ample supply and weakening demand outlook. Brent fell 18 percent in July, while U.S. crude's 21 percent decline was its biggest monthly decline since the 2008 financial crisis.
OPEC made a historic policy shift in November 2014, choosing to defend market share against rising output from rival producers rather than cut output to support prices. Since then, it has boosted production by more than 1.7 million barrels per day (bpd) - almost 6 percent.
"A retest of Brent crude's 2015 low around $45 per barrel looks inevitable given current ample market supply and intensifying bearish market sentiment towards prices," BMI Research said in a note.
(Additional reporting by Alex Lawler in London and Henning Gloystein in Singapore; Editing by William Hardy, David Evans and Jonathan Oatis)
