Oil rises for first session in four, dollar inches lower

Oil futures rose in American trade, with US crude off June 21 lows, while Brent climbed off April 10 lows, as the dollar index slipped from 14-month highs, following earlier data from the US, the world's largest energy consumer. 

As of 05:25 GMT, US crude futures due in September rose 0.54% to $65.36 a barrel, while Brent October futures added 0.78% to $71.31 a barrel, as the dollar index shed 0.05% to 96.64 away from 14-month highs against a basket of major rivals. 

Surprise Buildup 

On Wednesday, the Energy Information Administration released its report on US crude stocks, showing a buildup of 6.8 million barrels in the week ending August 10, compared to a 1.4 million drawdown in the previous week, while analysts expected a 2.6 million drop, with total stocks now up to 414.2 million barrels, making them 1% above five-year averages. 

Gasoline stocks fell 0.7 million barrels, still 5% above averages, while distillate stocks, including heating fuel, rose 3.6 million barrels, still 8% below averages. 

US Housing, Labor Data 

Earlier US data showed housing starts rose 1.5% to an annualized 1.311 million units in July, edging out estimates of a 1.4% increase to 1.310 million. 

Building permits rose 0.9% last month to an annualized 1.168 million units, compared to a 12.9% slump in June to 1.158 million, while missing expectations of a 7.4% increase to 1.260 million. 

An index tracking the manufacturing sector in Philadelphia fell to 11.9 from 25.7 in July, missing estimates of 21.9.  

US unemployment claims fell a thousand to 212 thousand in the week ending August 11, compared to 214 thousand in the previous reading, while analysts expected 215 thousand. 

Continuing claims fell 39 thousand in the week ending August 4 to 1.721 million from 1.760 million, beating estimates of 1.740 million. 

Otherwise, the Wall Street Journal reported that US and Chinese officials are meeting for new trade negotiations on August 22-23 in an attempt to prevent a developing trade war between the world's two largest economy and highest consumers of oil. 

US Oil Rig Count 

Last Friday, Baker Hughes, a US oil services company, reported an increase of 10 in the rig count to a total of 869 rigs, the first increase in three weeks.

US output is down to 10.80 million bpd, still above Saudi Arabia's 10.29 million bpd levels, while below Russia's 11.21 million bpd.