FX.co ★ Oil Prices Climb After Strong US Data

Oil prices climbed on Wednesday after a slew of U.S. economic data revived optimism that a recession can be avoided.

However, overall gains were kept in check by a firmer dollar, weak industrial profits data from China and a mixed industry report on U.S. crude stockpiles.

Benchmark Brent crude futures jumped 0.8 percent to $73.09 a barrel, while WTI crude futures were up nearly 1 percent at $68.35.

New orders for key manufactured capital goods unexpectedly rose in May, sales of new single-family homes surged in the month and a measure of U.S. consumer confidence surged to a near 1-1/2 year high in June, separate reports showed on Tuesday - helping ease concerns about an impending recession.

On the flipside, weak industrial profits data from China underscored the uneven nature of economic recovery and fueled the debate over the need for additional stimulus.

China's industrial profits declined 18.8 percent year-on-year in the January to May period amid weak demand and falling producer prices, the National Bureau of Statistics said earlier today.

Meanwhile, U.S. crude stockpiles declined by 2.408 million barrels during the week ended June 23, the American Petroleum Institute (API) reported on Tuesday while analysts had expected a smaller 1.467-million-barrel draw.

Notwithstanding the crude draw, there was a build of 1.45M barrels last week at the Cushing, Oklahoma hub that takes delivery of U.S. crude.

The API report showed a gasoline inventory drop of 2.85M barrels and a distillate stock build of 0.777M barrels.