Oil falls up to 5%, dollar loses ground

Oil futures fell in American trade with US crude plumbing September 2017 lows, and Brent October 2017 lows, as the dollar index tapered off June 2017 highs, following earlier data from the US, the world's largest oil producer and consumer. 

As of 06:14 GMT, US crude futures due in January shed 4.81% to $47.48 a barrel, while Brent February futures tumbled 3.67% to $57.42 a barrel, as the dollar index slipped to 97.09. 

Earlier US data showed building permits rose to an annualized 1.33 million units in November, besting estimates of 1.27 million, and compared to October's revised 1.27 million. 

US housing starts rose to an annualized 1.26 million units November, beating estimates of 1.23 million, and up from October's revised 1.22 million. 

UAE energy minister and OPEC President Suhail Al Mazroui said he expects all members and other producers who signed the deal to commit to cutting output in 2019, adding the oil market started an upward correction this month after announcing the deal to ease supplies by 1.2 million bpd next year. 

Otherwise, OPEC cut forecasts for demand on its oil in its monthly report by 100 thousand bpd to 31.44 million bpd for next year, as competitors pump larger amounts while economic growth slows down. 

On a similar note, Saudi Arabia said it plans to cut output to 10.2 million bpd in January, a 900 thousand bpd cut from November, while Russia plans a cut between 50 and 60 thousand bpd next month. 

OPEC announced an agreement to cut total output by 1.2 million bpd in coordination with allies such as Russia, with the cuts to start in January and with Iran, Libya, and Venezuela, gaining exceptions from the required cuts.

US Oil Rig Count 

Baker Hughes reported a drop in the US oil rig count by 4 rigs to a total of 873, the second weekly drop in a row, after reports that US output fell by 100 thousand bpd from recent record highs to 11.6 million bpd.