Oil climbs to three-week high as dollar flattens out

Oil futures rose nearly one percent to February 1 highs as the dollar index traded mostly flat today, following earlier data from the US, and after recent remarks by Saudi Arabia's oil minister Khalid Al Falih. 

As of 05:46 GMT, US West Texas Intermediate rose 0.77% to $64.04 a barrel from the opening of $63.55, while Brent futures due on April 15 climbed 0.52% to $67.66, as the dollar index advanced 0.06% to 89.94 from the opening of 89.88. 

Earlier US data showed new home sales fell 7.8% in January to an annualized 593 thousand units, compared to a 7.6% drop in December to 643 thousand, revised from a 9.3% decline, while analysts expected a 3.5% rise to 647 thousand units. 

Tomorrow, Federal Reserve Chair Jerome Powell is due to testify on the Semiannual Monetary Policy Report before the House Financial Services Committee, in Washington DC.

Saudi Arabia's oil minister Khalid Al Falih said that OPEC's output cuts could be phased out in 2019 in a way that doesn't rattle markets, while setting up a permanent frame to stabilize markets. 

Al Falih said Saudi output from January through March will be much less than production capacity, with exports falling below 7 million bpd. 

Baker Hughes reported a rise of the US oil rig count last Friday by a single rig to a total of 799 rigs, the highest since April 2015.