Oil prices gain ground as dollar dips

Oil futures tilted higher as US crude rebounded from February 25, while Brent climbed off July 14 lows as the dollar index backed off September 2002 highs.

The changes come ahead of major US data later today and following the crucial OPEC+ meeting, which ended up raising September production goals by 100 thousand bpd.

As of 05:36 GMT, US crude futures due in August rose 0.11% to $91.05 a barrel, while Brent September futures rose 0.08% to $97.09 a barrel, as the dollar index slipped 0.12% to 106.35. 

From the US, unemployment claims for the week ending July 2 are expected down a thousand to 230 thousand, while continuing claims for the week ending June 25 are expected down a thousand as well to 1.327 million.

US goods trade deficit is expected down to $85 billion from $87.1 billion.

Taiwan officials met US House of Representatives President Nancy Pelosi and asserted their commitment to democratic values and economic links.

Beijing condemned the visit and vowed for military action and manoeuvres around Taiwan, while also conducting traditional rocket launch experiments.

US President Joe Biden said that latest US quarterly recession isn't surprising as the Fed is trying to control inflation, however he asserted his government was on the right path.

The US administration's new inflation reducing low will impose a 15% tax on international companies, however no taxes will be raised on those earning $400 thousand and lower.

The Federal Reserve decided to hike rates last week by 75 basis points to 2.5%, the highest since December 2018 as expected.

Official US data showed crude inventories rose 4.5 million barrels to 426.6 million barrels last week, while analysts expected a drawdown of 1.4 million barrels.

Gasoline stocks rose 0.2 million barrels to 225.3 million barrels, while distillate stocks fell 2.4 million barrels to 109.3 million barrels.

Currently, two-year US treasury yields stand at 3.203%, while 10-year yields hit 2.954%, such divergence is usually indicative of upcoming recession.

It was confirmed last week that US President Joe Biden got a positive Covid 19 diagnosis, with light symptoms.

Medical officials in the US warned from a new Covid 19 wave in the US and worldwide, one that's particularly virulent, and asserting the pandemic isn't over yet.

Europe recently allowed several state-owned Russian oil companies to sell their products to several members of EU countries, however the US is seeking to put a limit on prices of Russian oil.

Baker Hughes data last week showed US oil rigs steadied at 605 rigs, the highest since March 2020, while rising in June for the 23rd month in a row.

US oil output on the other hand rose 200 thousand bpd last week to 12.1 million bpd, off April 2020 highs.