Oil climbs 1% as dollar retreats for first session in nine

Oil futures rose nearly one percent in Asian trade as the dollar index retreated from December 18 highs for another session, as traders look forward to upcoming US-China trade talks later this week in Beijing.

As of 03:55 GMT, US crude futures due in March rose 0.65% to $52.79 a barrel, while Brent March futures rose 0.71% to $62.01 a barrel, as the dollar index inched down 0.02% to 97.05, snapping the longest winning streak since November 2016. 

Now investors await the third round of US-China trade talks, with US treasury secretary Steven Mnuchin and other officials heading to Beijing later this week to resume negotiations. 

US President Donald Trump recently said he doesn't intend to meet with Chinese leader Xi Jinping before the early March deadline for their truce, rousing concerns in the markets about returning tariffs if no deal was reached in time. 

OPEC, Russian Statements 

OPEC President Suhail Al Mazroui asserted the importance of reaching balance in the oil market by the end of the current quarter, adding he expects oil prices to steady as well in this quarter. 

Otherwise, Russian energy minister Alexander Novak said discussions of permanent cooperation with OPEC could take place at the April meeting, with both sides currently committed to cut output by 1.2 million bpd for the first half of this year. 

US Oil Rigs 

Baker Hughes, a US oil services company, reported an increase of 7 in the rig count to a total of 854 rigs in the week ending February 7, away from ten-month lows. 

Last month, the Energy Information Administration forecast an increase in shale oil output to another record 8.179 million bpd, however the drop in rig activities might taper these expectations.