Tuesday saw a little increase in oil prices as China unexpectedly slashed key policy rates for the second time in three months to support a faltering economic recovery, but gains were restrained by Beijing's sluggish economy.

Brent crude futures ticked up by 0.4%, to trade at $86.53 per barrel meanwhile US WTI advanced by 0.3% to $82.77 per barrel.

The economy in China continued to weaken last month, according to figures on retail sales and industrial output released on Tuesday. This increased pressure on already sluggish growth prompted policymakers to lower key interest rates to support activity.

China's thirst for oil demonstrated resiliency despite the negative macroeconomic indicators. Refiners kept output high to fulfill demand for domestic summer travel and to profit from strong regional profit margins by exporting petroleum. As a result, the country's refinery throughput increased by 17.4% in July compared to the same month last year.

Given that OPEC+, also known as the Organization of the Petroleum Exporting Countries, has reduced production, the United States' dropping output may make the world's already scarce oil supply even more scarce.