Companies United States of America FollowJune 13 (Reuters) - Oil prices traded up on Tuesday on bargain hunting, recovering some ground from the previous day'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. Oil prices could fall further because of China'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 Fed's rate hikes have strengthened the greenback, making dollar-denominated commodities more expensive for holders of other currencies and weighing on prices. "In our view, the latest fall in oil prices increases the probability Saudi Arabia will at least extend supply cuts currently in place for July," said National Australia Bank analysts in a note.

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Persons: Tatsufumi Okoshi, Nomura's Okoshi, Yuka Obayashi, Emily Chow, Jamie Freed, Sonali Paul Organizations: U.S . Federal Reserve, . West Texas, Nomura Securities, European Central Bank, Bank of Japan, of Petroleum Exporting, International Energy Agency, National Australia Bank, Thomson Locations: States, America, Saudi Arabia, U.S, China, Saudi, Tokyo, Singapore