Oil futures rose nearly two percent away from the lowest in ten months, as the dollar index bounced off the highest since November, 9, following earlier data from the US, the world's largest energy consumer.
As of 06:43 GMT, US crude futures due on August 16 rose 1.94% to $44.22 a barrel from the opening of $43.38, while Brent crude futures due on August 16 gained 1.85% to $46.68 a barrel from the opening of $45.83, as the dollar index shed 0.66% to 96.79 from the opening of 97.43.
From the US, earlier data showed an unexpected rise in consumer confidence in June, while the Richmond manufacturing index rose past expectations, as the S&P/CS Composite-20 House Price Index fell unexpectedly.
Similarly, we followed Federal Reserve Bank of Philadelphia President Patrick Harker's speech about the economic outlook and international trade at the European Economics & Financial Centre, in London, at which he described the recent weakness inflationary pressures in the US as transient, while expressing his ongoing support for tightening the policy and increasing interest rates.
Harker said another Fed rate hike this year would be appropriate, while downgrading his inflation projections a bit, but still expecting inflation to hit the Federal Reserve's 2% target by 2018, adding that the Fed is moving into the right direction, and the labor sector is getting rid of its weaknesses almost entirely, and forecasting a growth rate of 2.3% in America this year.
Federal Reserve Chair Janet Yellen spoke today about global economic issues at the British Academy 'President's Lecture', in London, after the International Monetary Fund downgraded its forecasts for US growth to 2.1% this year from 2.3% in previous forecasts in April, and to 2.1% in 2018 from 2.5%, while mentioning the US economy hasn't created income-based growth so far.
Oil futures are recovering on profit-taking, after marking the fifth weekly loss in a row last Friday, the longest such streak since 2015, as markets price in above five-year averages global oil inventories at 292 million barrels, and after US, Libyan, and OPEC production increased in May.