Oil futures hit 2-1/2 year high as dollar dips

US crude futures reversed higher in American trade, with US crude hitting a 2-1/2 year high as the dollar lost ground, and after a large US inventory drawdown and on prospects of another extension to the global deal to cut output, while gains were curbed by another surge in US output to new record highs. 

As of 13:35 GMT, US West Texas Intermediate rose $58.20 a barrel from the opening of $58.00, with an intraday high at $58.21, the best since July 2015, and a low at $57.74. 

Brent last traded at $63.25, near the opening of $63.26, with an intraday high at $63.29, and a low at $62.86. 

US West Texas Intermediate rose 1.7% yesterday, hitting a 2-1/2 high at $58.13 a barrel, while Brent added 1% to a one-week high at $63.39. 

The dollar index shed 0.2% to a five-week trough at 92.99, marking the third daily loss in a row, in turn underpinning dollar-denominated commodity futures. 

The EIA report showed a drawdown of 1.9 million barrels in the week ending November 17, passing expectations of a 1.4M drop. 

Baker Hughes reported a rise of 9 rigs in the US oil rig count to a total of 747 rigs, the highest since October 13. 

OPEC will convene next Thursday to discuss market updates and output policies, with a probability of extending the output deal for nine more months until the end of 2018.