Oil Prices Rebound on U.S. Data

Oil prices on Wednesday recovered from two-month lows, as traders reacted to a drop in crude inventories in the United States.

The U.S. Department of Energy reported that crude stockpiles dropped by 2.3 million barrels last week, offsetting a surprise rise in gasoline inventories during the peak demand season for American motor fuel.

Around 1630 GMT, Brent North Sea crude for delivery in September was up 67 cents at $47.33 a barrel.

U.S. benchmark West Texas Intermediate for September rose 41 cents to $45.86 compared with Tuesday's close.

Earlier Wednesday and ahead of the data, WTI struck a 2.5-month low point at $43.69 a barrel.

Prices had been hit by renewed strength in the dollar -- making the commodity more expensive for buyers holding weaker currencies.

U.S. oil prices already hit two-month lows Tuesday after the International Monetary Fund lowered its global growth forecasts, citing the impact of Britain's vote to leave the European Union.

The IMF said it expects the world economy to expand 3.1 percent this year, lower than it forecast in April. Slower overall growth would likely dampen the expansion of crude oil demand.