Oil prices edge higher as dollar slips
Oil futures tilted higher in Asian trade as the dollar index backed off June 15 highs amid a lack of data today from the US while investors assess developments in China and the Ukrainian crisis.
As of 06:13 GMT, US crude futures due in August rose 0.13% to $108.94 a barrel, while Brent September futures rose 0.55% to $112.22 a barrel, as the dollar index shed 0.07% to 105.06.
Covid 19 cases surged once more in China, triggering concerns once more about another lockdown in major cities.
Latest World Health Organization data showed Covid 19 infections rose to 545 million cases worldwide, with the death toll hitting 6.33 million.
On the Ukrainian front, Ukrainian troops withdraw from the east officially with Russia about completely seize Lohansk.
Otherwise, OPEC + decided last week to maintain previous decision to increase output by 648 thousand bpd in July and August.
Baker Hughes data showed the US oil rigs rose by one rig last week to 595 rigs, the highest since March 2020, with rigs increasing for the 23rd month in a row, while production rose 100 thousand bpd to 12.1 million bpd, the highest since April 2020.
US oil production fell 0.9 million barrels, or 8% from record highs at 13.1 million bpd in March 2020, while hitting record lows in August 2020 at 9.7 million bpd before recent recovery.
US Stock indices decline as third quarter opens up
US stock indices declined on Friday, the first session of the third quarter, after marking historic losses in the first six months of 2022.
The losses come amid concerns about US economic recession due to consecutive rate hikes as the Federal Reserve seeks to control runaway inflation.
Dow Jones declined 0.5% as of 14:17 GMT to 30,624, while S&P 500 shed 0.4% to 3,770, as NASDAQ fell 0.3% to 10,999.
Oil prices rise nearly 3% on global supply shortage concerns
Oil prices rose 3% in European trade after hovering near two-week highs for the last couple of days, now heading for the first weekly profit in a month.
Prices are also boosted by a drop in US crude stocks according the latest US official data, in a positive sign for demand in the US.
Global Prices
US crude rose 3% to $108.92 a barrel, while Brent climbed 2.8% to $112.32 a barrel.
US crude lost 3.3% on Thursday, while Brent shed 5.5%, the second loss in a row on active profit-taking off two-week highs.
Prices were pressured as the Ecuadorian government reached a deal with the rioting opposition to end two weeks of protests and resume oil production.,
Oil prices are up 0.75% so far this week on track for the first weekly profit in a month.
Global Supplies
Concerns about global supply shortages led to a surge in prices as several countries struggle to produce oil.
Libyan Output
Libyan authorities said they might close some oil exporting ports amid overwhelming conditions that are preventing proper operations.
Macron
French President Emanuel Macron told his US counterpart Joe Biden that the communicated with UAE government and Saudi governments, and both are at their upper limits of production.
US administration has been trying to pressure UAE and Saudi Arabia to increase output to offset some of the Russian shortages.
OPEC +
The OPEC + organization agreed to maintain current production plans unchanged, with goals of hiking production by 648 thousand bpd in July and August.
US Stocks
Official US data showed US commercial stocks fell by 2.8 million barrels on Wednesday in the week ending June 24, the second decrease in a row, while analysts expected a 0.9 million barrels drop.
Now total stocks are down to 415.5 million barrels, the lowest since the week ending May 17.