June 13 Reuters Oil prices traded up on Tuesday on bargain hunting, recovering some ground from the previous day39;s plunge, but gains were limited as investors remained cautious ahead of key policy decisions by the U.S. Federal Reserve and other central banks.

Brent crude futures climbed 77 cents, or 1.1, to 72.61 a barrel by 0640 GMT. U.S. West Texas Intermediate WTI crude was at 67.68 a barrel, up 56 cents, or 0.8.

Both benchmarks fell around 3 a barrel on Monday after analysts highlighted rising global supplies and concerns about demand growth just ahead of key inflation data and a twoday Fed monetary policy meeting concluding on Wednesday.

Some investors looked for bargains after the previous day39;s heavy selling while others held back their positions with speculation that Saudi Arabia may cut production additionally, said Tatsufumi Okoshi, a senior economist at Nomura Securities.

Oil prices could fall further because of China39;s faltering economic recovery, he added, predicting WTI would trade in the range of 62.50 to 75 a barrel during the summer, but mainly below 70 a barrel.

Most market participants expect the U.S. central bank to leave interest rates unchanged at its policy meeting. The Fed39;s rate hikes have strengthened the greenback, making dollardenominated commodities more expensive for holders of other currencies and weighing on prices.

The European Central Bank is expected to hike interest rates by another quarter percentage point on Thursday…