Oil hits late 2014 highs even as dollar ekes out gains

Oil futures rose over one percent in American trade to late November, 2014 highs even as the dollar index rebounded from March 27 lows for the third straight session, following earlier data from the US, the world's largest energy consumer, while traders look forward to OPEC's meeting with Russia in Jeddah, Saudi Arabia. 

As of 03:48 GMT, US crude futures due on May 15 rose 1.04% to $69.18 a barrel from the opening of $68.47, as Brent futures due on June 15 rallied 1.54% to $74.61 a barrel from the opening of $73.48, while the dollar index rose 0.15% to 89.79 from the opening of 89.62. 

Federal Reserve Governor Lael Brainard spoke earlier today about regulatory reform at the Global Finance Forum, in Washington DC, where she noted that inflation rates remain stable with no sign of imbalance. 

Brainard cautioned from a new economic stage where assets and financial leverages rise, before earlier US data showed unemployment claims fell 1 thousand to 232 thousand from 233 thousand, above expectations of 230K. 

The Philly Manufacturing Index rose to 23.2 from 22.3 in March, beating expectations of 20.8, while Federal Reserve Governor Randal Quarles testified on supervision and regulation before the Senate Banking Committee, in Washington D, where he said cryptocurrencies don't represent threats to financial stability, while calling on small banks to come up with new rules to financial liquidity. 

On Wednesday, the Energy Information Administration released its report on US crude stocks, showing a drawdown of 1.1 million barrels in the week ending April 13, compared to a surplus of 3.3 million barrels, while analysts expected a 0.5M deficit, with total inventories down to 427.6 million barrels, remaining below average for this time of year.

Gasoline stocks in the world's largest energy consumer fell 3 million barrels, while distillate stocks, including heating fuel, fell 3.1 million barrels. 

Data sourced from OPEC's meeting with outside allies, mainly Russia, indicate the oil market should regain balance in the current quarter, after the EIA reported a drop in US crude inventories to below 5-year averages for the first time since 2014. 

Last Friday, Baker Hughes reported a rise of 7 in the oil rig count last week, the second increase in a row to a total of 815 rigs, the highest since March 2015.