Investing.com - Crude oil futures rebounded from five-week lows in early Asian trade Friday, pulled down earlier by a rising U.S. dollar and expectations for a drop in demand from the world’s largest energy consumer.
On the New York Mercantile Exchange light, sweet crude futures for September delivery traded at USD86.61 a barrel during early Asian trade, gaining 0.20%, after hitting a daily low of USD86.17.
Concerns that the U.S. economy was showing signs of stagnant growth sent all three major indexes on Wall Street sharply lower in the Thursday session.
The Dow Jones Industrial Average sank 4.3%, the Nasdaq Composite Index tumbled 5.1%, its worst percentage loss since January 2009, and the S%P 500 gave up 4.8%, its worst percentage drop since February 2009.
The U.S. Energy Information Administration said in its weekly report on Wednesday that U.S. crude supplies increased by 1.0 million barrels last week, rising for the second consecutive week.
Total motor gasoline inventories rose by 1.7 million barrels, significantly higher than expectations for a 0.5 million barrel increase and the biggest gain since early April.
The U.S. dollar extended gains against its major counterparts, as the Bank of Japan intervened in the foreign exchange market late Wednesday in an effort to weaken the yen against the greenback.
Dollar-denominated oil futures contracts tend to fall when the dollar rises, as oil becomes more expensive for purchasers in other currencies.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, hit a two-week high earlier Thursday of 75.64.
On the ICE Futures Exchange Brent oil futures for September delivery fell 0.07% to trade at USD107.61.
On the New York Mercantile Exchange light, sweet crude futures for September delivery traded at USD86.61 a barrel during early Asian trade, gaining 0.20%, after hitting a daily low of USD86.17.
Concerns that the U.S. economy was showing signs of stagnant growth sent all three major indexes on Wall Street sharply lower in the Thursday session.
The Dow Jones Industrial Average sank 4.3%, the Nasdaq Composite Index tumbled 5.1%, its worst percentage loss since January 2009, and the S%P 500 gave up 4.8%, its worst percentage drop since February 2009.
The U.S. Energy Information Administration said in its weekly report on Wednesday that U.S. crude supplies increased by 1.0 million barrels last week, rising for the second consecutive week.
Total motor gasoline inventories rose by 1.7 million barrels, significantly higher than expectations for a 0.5 million barrel increase and the biggest gain since early April.
The U.S. dollar extended gains against its major counterparts, as the Bank of Japan intervened in the foreign exchange market late Wednesday in an effort to weaken the yen against the greenback.
Dollar-denominated oil futures contracts tend to fall when the dollar rises, as oil becomes more expensive for purchasers in other currencies.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, hit a two-week high earlier Thursday of 75.64.
On the ICE Futures Exchange Brent oil futures for September delivery fell 0.07% to trade at USD107.61.