Oil mixed as dollar scales eight-week high

Oil futures were mixed in American trade as the dollar index rebounded from March 2 lows, following earlier data from the US, the world's largest energy consumer, and after remarks by OPEC president Suhail Al Mazroui. 

As of 04:59 GMT, US West Texas Intermediate (WTI) futures due on May 15 inched down 0.28% to $68.21 a barrel from the opening of $68.40, while Brent futures due on June 15 added 0.20% to $74.21 a barrel from the opening of $74.06, as the dollar index rallied 0.62% to 90.88 from the opening of 90.32. 

Earlier US data showed the preliminary services PMI rose to 54.4 from 54 in March, beating forecasts of 54.3, while manufacturing PMI rose to 56.5 from 55.6 in March, beating expectations of 55.2. 

Existing home sales rose 1.1% in March to an annualized 5.60 million units, compared to a 3% rise in February to 5.54 million, beating expectations of a 0.2% rise to 5.55 million units.

The dollar index hit two-month highs 10-year US treasury yields rallied to early 2014 highs near 3%. 

OPEC President and UAE energy minister Suhail Al Mazroui stated earlier that the oil market is still regaining balance, which would take some time, with OPEC and allies still to determine the suitable levels of crude inventories. 

Iranian oil minister Bijan Namdar Zangeneh remarked earlier that US President Donald Trump prefers higher oil prices, doubting his recent criticism of OPEC for their efforts to underpin prices. 

Last Friday, Baker Hughes reported a rise in the US oil rig count last week by 5 rigs to a total of 820 rigs, the highest since March 2015. 

US crude output is up nearly 25% from mid-2016 levels past Saudi Arabia's 9.9 bpd levels, and near Russia's 11 million bpd levels.