Oil on track for first monthly loss in over half a year

Oil futures fell nearly one percent away from early February highs, as the dollar index rose from December 17, 2014 lows for the seventh session out of nine, following earlier data from the US, the world's largest energy importer, and the US, including the EIA report that showed a more-than-expected inventory buildup last week. 

As of 06:02 GMT, US West Texas Intermediate futures shed 0.60% to $62.63 a barrel from the opening of $63.01, while Brent futures due on April 15 declined 0.98% to $65.98 a barrel from the opening of $66.63, as the dollar index added 0.22% to 90.55 from the opening of 90.36, marking January 22 highs. 

Earlier Chinese data showed the manufacturing PMI fell to 50.3 in February from 51.3, missing expectations of 51.2 while the services PMI slipped to 54.4 from 55.3. 

Otherwise, earlier disappointing US data showed GDP growth slowed down to 2.5% in the fourth quarter of 2017, matching expectations and down from the preliminary reading's 2.6% growth, and the third quarter's 3.2% growth rate. 

GDP prices slowed down as well to 2.3% in the second reading, missing expectations of 2.4%, while Chicago PMI slowed down to 61.9 in February from 65.7 in January, missing expectations of 64.2. 

Pending home sales fell 4.7% m/m in January, compared to no-change in December, revised from a 0.5% rise, while analysts expected a 0.4% rise. 

Federal Reserve Chair Jerome Powell testified on the Semiannual Monetary Policy Report before the House Financial Services Committee, in Washington DC, on Tuesday, while on Thursday, Powell will testify before the Senate Banking Committee, thus completing the second half of his Congress testimony.

The Energy Information Administration released its report on US crude stocks, showing a buildup of 3.0 million barrels in the week ending February 23, compared to a 1.6M drop in the previous reading, while analysts expected a 2.4M rise, with total stocks now reaching 423.5 million barrels, remaining within the medium range on average in this time of year. 

Gasoline stocks rose 2.5 million barrels, while distillate stocks, including heating fuel, fell 1.0 million barrels, remaining within the medium range on average in this time of year. 

Fatih Birol, Executive Director of the International Energy Agency, said in earlier remarks that the US will become the world's largest crude producer by next year, or even this year, passing Russia by piercing 11 million bpd. 

UAE energy minister and President of OPEC Suhail Al Mazroui said that he's optimistic on the return of balance to the oil market this year, noting that the oil market just needs more essential investments in its resources. 

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.