Oil prices rebound from six-month lows, dollar edges up

Oil futures tilted higher in Asian trade with US crude off January 26 lows, while Brent climbed from February 18 lows, as the dollar index climbed from June 29 lows. 

It comes ahead of major US data today, and warnings from OPEC that emergency capacity to produce oil has become rare and scarcity could be coming. 

As of 05:37 GMT, US crude futures rose 0.76% to $87.76 a barrel, while Brent October futures rose 0.54% to $93.68 a barrel, as the dollar index rose 0.05% to 106.71. 

From the US, unemployment claims for the week ending August 13 are expected up 3 thousand to 265 thousand, while continuing claims are expected up 10 thousand to 1.438 million.

The Philly Manufacturing Index is expected up to minus 4.9 from minus 12.3 in July, while existing home sales are expected down to 4.87 million units. 

Federal Reserve Bank of Kansas City President Esther George is due to speak about the economic outlook at an event hosted by the Fairfax Industrial Association, in Missouri, later today.

Official US data showed crude inventories tumbled 7.1 million barrels last week to 425 million barrels, while analysts expected a drop of 275 thousand barrels.

Gasoline stocks fell 4.6 million barrels to 215.7 million barrels, while distillate stocks rose 0.8 million barrels to 112.3 million barrels.

US two-year and five-year treasury yields curves remain reversed, in an ominous sign for an upcoming depression in the US economy.

Otherwise, China continues to face a very stubborn Covid 19 wave that continues to impede growth, with World Health Organization reporting 585.05 million global infections worldwide so far, with the death toll at 6.425 million.

Baker Hughes data showed US oil rigs rose by 3 to 601 rigs, while rising in July for the 24th month in a row, with US output stabilizing at 12.1 million bpd, the highest since April 2020.

US output remains down a million bpd, or 8% from record highs at 13.1 million bpd in March 2020.