Oil futures retreat even as dollar touches 11-month low

Oil futures fell in American trade even as the dollar hit a fresh 11-month low, following earlier data from the US, the world's largest energy consumer. 

As of 05:32 GMT, US crude futures due on August 16 fell 0.49% to $46.89 a barrel from the opening of $47.12, while Brent crude futures due on September 15 shed 0.26% to $49.57 a barrel from the opening of $49.70, as the dollar index declined 0.58% to 94.23 from the opening of 94.78, marking an eleven-month trough.

Earlier US data showed a bigger than expected drop in weekly unemployment claims, while the Philly manufacturing index slowed down more than forecast in July.

Otherwise, the Energy Information Administration released its report on US crude stocks yesterday, showing a drawdown of 4.7 million barrels in the week ending July 14, adding to a 7.6M drawdown in the previous reading, while analysts expected only a 3.6M drop, with total stocks now reaching 490.6 million barrels, remaining within the uppermost range on average in this time of year. 

Otherwise, gasoline stocks fell 4.4 million barrels, while distillate inventories, including heating fuel, fell 2.1 million, both remaining within the uppermost range on average in this time of year. 

Similarly, International Energy Agency official Neil Atkinson projected a drop in global oil supply in the second half of this year, underpinning prices, while pointing to the gains as small due to the resilience of US shale production.