Oil prices decline over 3% as dollar gains ground

Oil futures declined over 3% in Asian trade off March 9 highs, marking May 19 lows as the dollar index bounced off June 10 lows for another session, as markets price in economic slowdown, which will impact oil demand worldwide. 

As of 05:51 GMT, US crude futures due in July tumbled 3.82% to $105.51 a barrel, while Brent futures due in August slumped 3.28% to $110.93 a barrel, as the dollar index rose 0.26% to 104.71.

Reports indicated US President Joe Biden is considering a suspension of the federal tax on gasoline, estimated at 18.4 cents per gallon.

Now investors await Jerome Powell's testimony ahead of Congress later today.

Libya's energy minister Muhammad Ouna said total Libyan production hit 700 thousand bpd, up from just 150 thousand bpd last week amid continued struggles with rebels.

Otherwise, OPEC General Secretary Muhammed Barkindo asserted the organization is trying to maintain supplies, and opened the door for extending the OPEC + deal with Russia to beyond this year, depending on market conditions.

On the Ukrainian crisis, the Kremlin said the negotiations with Ukraine aren't going very well, especially after aggressive remarks by the Ukrainian government recently on the Crimean Bridge.

Ukrainian government asserted a goal to take back the Crimean Bridge once it acquire weaponry from the US and Europe.

Baker Hughes data showed US oil rigs rose by 4 rigs to 584 rigs last week, the second such increase in a row to March 2020 highs.

Oil rigs rose in May for the 22nd month in row, the longest such streak ever, while US output rose 100 thousand bpd last week to a total of 12 million bpd, the highest since April 2020.