Oil on track for second consecutive weekly profit as US output tapers off

Oil futures rose nearly one percent to February 7 highs even as the dollar index advanced for the fifth session out of six away from December 17, 2014 lows, following earlier data from China and the US. 

As of 06:23 GMT, US West Texas Intermediate rose 0.89% to $63.33 a barrel from the opening of $62.77, while Brent futures due on April 15 added 0.84% to $66.95 a barrel from the opening of $66.39, as the dollar index climbed 0.13% to 89.86 from the opening of 89.74. 

Earlier Chinese data showed the CB leading Index accelerated to 1.6 in January from December's 1.4 reading. 

Federal Reserve Bank of New York President William Dudley participated in a panel discussion about the Fed's balance sheet at the United States Monetary Policy Forum, in New York, while Federal Reserve Bank of Cleveland President Loretta Mester will participate in a panel discussion about monetary policy objectives at the United States Monetary Policy Forum, in New York.

The Federal Reserve released its biannual report on monetary policy discussions and outlook for Congress to review, as Federal Reserve Chair Jerome Powell testifies before the Senate Committee on Banking, Housing, and Urban Affairs and to the House Committee on Financial Services and submit a report on monetary policy and Fed's outlook.  

Federal Reserve Bank of San Francisco President John Williams will speak about economic and monetary policy at the City Club of Los Angeles, while earlier this week, the Federal Reserve released the minutes of the January 30-31 meeting, at which policymakers held interest rates unchanged between 1.25% and 1.50%, while expecting inflation to settle at 2% in the next 12 months.

The Energy Information Administration released its report on US crude stocks, showing a deficit of 1.6 million barrels in the week ending February 16, compared to a 1.8M buildup in the previous reading, while analysts expected a 2.2M increase, with total stocks now down to 420.5 million barrels, remaining within the medium range on average in this time of year. 

Gasoline stocks rose 0.3 million barrels, while distillate stocks, including heating fuel, fell 2.4 million barrels, also remaining within the medium range on average in this time of year.

Saudi energy minister Khalid Al Falih said in New Delhi that the oil market is regaining its balance, expecting global crude inventories to continue falling this year, as OPEC and allies cut output by 1.8 million bpd until the end of this year to ease oversupply.