Oil futures pierce $50 as dollar declines

Oil futures rose over one percent in American trade as the dollar index continued its downward march away from the highest since September 5 for the fourth session out of five, following a spate of data from the US, the world's largest energy consumer, including the EIA report that showed a shrinking inventory buildup last week, while the Federal Open Market Committee's policy meeting draws to an end in Washington. 

As of 04:00 GMT, US crude futures due on October 15 rose 1.11% to $50.03 a barrel from the opening of $49.48, while Brent crude futures due on November 15 rallied 1.41% to $55.92 a barrel from the opening of $55.14, as the dollar index shed 0.09% to 91.71 from the opening of 91.79. 

Earlier US data showed existing home sales slid 1.7% in August to an annualized 5.35 million units, compared to July's 1.3% drop to 5.44M, while analysts expected a 0.2% increase to 5.46M. 

The Energy Information Administration released its report on US crude stocks, showing a buildup of 4.6 million barrels in the week ending September 15, adding to the 5.9M buildup in the previous reading, while analysts expected a 2.8M rise, with total stocks now reaching 472.8 million barrels, remaining within the uppermost range on average in this time of year.  

Otherwise, gasoline stocks in the world's largest energy consumer fell 2.1 million barrels, also remaining within the uppermost range on average in this time of year, while distillate stocks, including heating fuel, tumbled 5.7 million barrels, moving into the lower range on average in this time of year. 

Investors now look forward to policy decisions by Federal Open Market Committee members later today, with policymakers expected to unveil their three-year forecasts for inflation, growth, unemployment, and interest rates. 

Fed policymakers are expected to start the process of trimming down the Federal Reserve's $4.2 trillion holdings of treasury bonds and mortgage-backed securities, while maintaining overnight interest rates at between 1% and 1.25%.