Oil futures jump two percent on profit-taking

Oil futures rebounded from ten-month lows on Wednesday as the dollar settled lower, following earlier data from the US, the world's largest economy. 

As of 06:03 GMT, US crude futures due on August 16 rose 1.53% to $43.18 a barrel from the opening of $42.53, while Brent crude futures due on August 16 jumped 1.87% to $45.66 a barrel from the opening of $44.82, as the dollar index shed 0.02% to 97.54 from the opening of 97.56. 

Earlier US data showed unemployment claims rising in line with expectations, while the housing price index rose 0.7%, or the same as before in April, as the CB leading index accelerated below forecasts in May. 

Similarly, Federal Open Market Committee member Jerome Powell has testified in front of the Senate Committee on Banking, Housing, and Urban Affairs, in Washington DC, regarding the economic growth rate for the world's biggest economy.

Oil futures are recovering on profit-taking, while still heading for the fifth weekly loss in a row, 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. 

Otherwise, the Energy Information Administration released its report on US crude stocks, showing a drawdown of 2.5 million barrels in the week ending June 16, adding to the 1.7M drop in the previous reading, while analysts expected a 1.2% fall, with total stocks now reaching 509.1 million barrels, remaining within the upper range in average for this time of year. 

Gasoline stocks fell 0.6 million barrels, while distillate stocks rose 1.1 million barrels, both remaining within the upper range in average for this time of year.