tokyo june 13 reuters  oil prices inched higher on tuesday on bargain hunting recovering some ground from the previous days plunge but gains were limited as investors remained cautious ahead of key policy decisions by the us federal reserve and other central banks brent crude futures climbed 16 cents or 02 to 7200 a barrel by 0048 gmt us west texas intermediate wti crude was at 6719 a barrel up 7 cents or 01 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 days 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 face a further downside risk because of chinas faltering economic recovery he added predicting wti would trade in the range of 6250 to 75 a barrel during the summer but mainly below 70 a barrel most market participants expect the us central bank to leave interest rates unchanged at its policy meeting the feds 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 to tame stubborn inflation but the bank of japan which will announce its plan on friday is expected to maintain its ultraloose policy in china disappointing economic data last week raised concerns about demand growth in the worlds largest crude importer offsetting a boost in prices from saudi arabias pledge to cut an extra 1 million barrels per day of production in july the market is also waiting for demand outlooks from organization of petroleum exporting countries and the international energy agency nomuras okoshi said both organisations will release their monthly market updates later on tuesday