Oil declines for fifth straight session on US supply growth

Oil futures fell nearly one percent in American trade to two-week lows as the dollar index bounced off October 20 lows, following a basket of data from the US, the world's largest energy consumer. 

As of 06:20 GMT, US West Texas Intermediate fell 0.51% to $55.05 a barrel from the opening of $55.33, while Brent futures due on January 15 shed 0.89% to $61.32 a barrel from the opening of $61.87, as the dollar index rose 0.06% to 93.87 from the opening of 93.81. 

Earlier US data showed unemployment claims rose to 249 thousand in the week ending November 11 from 239 thousand in the previous reading, while analysts expected a drop to 235 thousand, as import prices slowed down to 0.2% from 0.8% in September. 

The Philly Manufacturing Index slowed down sharply to 18.9 in November from 27.9 in October, missing analysts' expectations of a smaller drop to 24.5. 

US industrial production rose 0.9% in October, accelerating from 0.4% in September, revised upwards from 0.3%, while analysts expected a 0.5% increase, and finally, the Capacity Utilization Rate rose to 77.0 in October from 76.4%, beating expectations of a dip to 76.3%. 

On Wednesday, the Energy Information Administration released its report on US crude stocks, showing a buildup of 1.9 million barrels in the week ending November 11, adding to the previous week's 2.1M increase, while analysts expected a 2.1M drop, with total stocks now reaching 459.0 million barrels, remaining within the upward range on average in this time of year. 

Otherwise, gasoline stocks in the world's largest energy consumer rose 0.9 million barrels, while distillate stocks, including heating fuel, fell 0.8 million barrels, remaining within the lower range on average in this time of year.  

Baker Hughes reported a rise of 30 thousand bpd in US oil output, hitting a record high at 9.65 million bpd. 

Earlier this week, the International Energy Agency cut its projections for global oil demand in 2018 by 200 thousand bpd to 98.9 million bpd, while cutting forecasts for global demand growth by 100 thousand bpd to 1.3 million bpd, as a more-than-usual moderate weather in the winter hurt heating fuel demand, while the recent spike in prices pave the way for more US shale production and hurt the market balance efforts in 2018. 

Otherwise, OPEC's countries are scheduled to meet on November 30 to discuss the market's movements and update the policy, with analysts widely expecting an extending agreement of the output cut deal until the end of 2018.