Oil prices were higher in European trade on Tuesday, extending their recovery from last week's 10-month lows, but futures stayed volatile in the face of fresh supply worries amid indications that US shale production will continue to rise, said a report in Investing.com.

The US West Texas Intermediate crude August contract was at $43.72 a barrel by 3:25AM ET (0725GMT), up 35 cents, or around 0.8 per cent. It touched its lowest since August 11 at $42.05 on Wednesday last week.

Elsewhere, Brent oil for September delivery on the ICE Futures Exchange in London tacked on 39 cents to $46.43 a barrel, after hitting $44.35 last Wednesday, a level not seen since November 14, the report said.

Oil settled higher Monday, tallying their third straight session of gains, despite ongoing pressure from expectations of further growth in US output.

US drillers last week added rigs for the 23rd week in a row, according to data from energy services company Baker Hughes, implying that further gains in domestic production are ahead.

The increase in US drilling activity and shale production has mostly offset efforts by Organization of Petroleum Exporting Countries (Opec and other producers to cut output in a move to prop up the market.

In May, Opec and 11 other exporters, such as Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, the Russian Federation, Republic of Sudan, and the Republic of South Sudan extended a deal to cut 1.8 million barrels per day in supply until March 2018.

However, Nigeria and Libya have raised output. Iran was allowed a small increase to recover market share lost under Western sanctions.