Crude oil futures rebound in volatile trade; Brent above $49

Investing.com - Crude oil futures recovered from earlier losses in volatile trade on Thursday, but gains were likely to remain limited amid ongoing fears over a glut in global supplies.

On the ICE Futures Exchange in London, Brent oil for March delivery jumped 58 cents, or 1.21%, to trade at $49.06 a barrel during U.S. morning hours.

A day earlier, Brent for March delivery dropped $1.13, or 2.28%, to close at $48.47.

Elsewhere, on the New York Mercantile Exchange, crude oil for delivery in March picked up 33 cents, or 0.74%, to trade at $44.78 a barrel.

On Wednesday, New York-traded oil futures hit $44.08, a level not seen since March 2009, before settling at $44.45, down $1.78, or 3.85%, after government data showed U.S. crude supplies rose to the highest level since at least 1982.

Oil prices have fallen nearly 60% since June as the Organization of Petroleum Exporting Countries resisted calls to cut output, while the U.S. pumped at the fastest pace in more than three decades, creating a glut in global supplies.

Meanwhile, the U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, dipped 0.15% to 94.74, moving away from last week's more than 11-year highs of 95.77.

Oil prices typically strengthen when the U.S. currency weakens as the dollar-priced commodity becomes cheaper for holders of other currencies.

The U.S. Department of Labor said in a report earlier that the number of individuals filing for initial jobless benefits decreased by 43,000 to 265,000 last week, the lowest since 2000.

The upbeat data added to optimism over the strength of the economy and fuelled expectations that the Federal Reserve will begin to raise rates sooner than previously thought.

The U.S. central bank upgraded its assessment of the economy and the labor market on Wednesday, leaving it on track to raise rates in the second half of this year.

Meanwhile, the euro remained under pressure after Greece’s new government moved Wednesday to roll back deeply unpopular austerity policies underpinning the county’s €240 billion international bailout, fuelling fears over a clash with its international creditors.