Oil jumps two percent as dollar dips

Oil futures rose over two percent in American trade, marking the best performance in two weeks while still heading for the first weekly decline in six, as the dollar lost ground, following a basket of data from the US, the world's largest energy consumer, and after statements of Saudi energy minister Khalid Al Faleh ahead of OPEC's meeting in Vienna. 

As of 07:17 GMT, US West Texas Intermediate rose 2.29% to $56.40 a barrel from the opening of $55.14, while Brent futures due on January 15 advanced 2.12% to $62.66 a barrel from the opening of $61.36, as the dollar index shed 0.31% to 93.64 from the opening of 93.93. 

Earlier US data showed housing starts surged 13.7% in October to 1.290 million units, compared to a 3.2% decline in September to 1.135 million, while analysts expected a 5.6% rise to 1.190 million.

Building permits rose 5.9% to 1.297 million units, compared to a 3.7% drop in September to 1.225 million, beating expectations of a 2.0% rise to 1.250M. 

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.  

Saudi energy minister Khalid Al Faleh said in earlier remarks that it's unlikely that global inventories will fall to five-year averages and for the global market to reach balance by next March, necessitating the need for an extension to the output cut deal. 

Al Faleh noted that recent arrests for Saudi princes and officials on corruption charges won't hurt foreign investments or the plan to underwrite some of Aramco's shares by 2018.

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.