Oil futures tilted higher in Asian trade as the dollar backed off September 2002 highs ahead of major US data, including crude inventories, which might show a reduction of 1.4 million barrels.

Traders also await the OPEC + meeting which includes Russia, and their decision on September production, which might show a modest increase.

As of 05:25 GMT, US crude futures rose 0.33% to $94.14 a barrel, while Brent September futures rose 0.34% to $99.98 a barrel, as the dollar index fell 0.23% to 106.19. 

US Markit services index is expected down at 47 in July, down from 52.7 in June.

US factory orders are expected up 1.3%, slowing down from 1.6% in May.

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 by 75 basis points to 2.5%, the highest since December 2018 as expected.

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.

The US JOLTS job vacancies index showed a drop below 11 million jobs  for the first time since the fall, showing a slowdown in corporate hiring. 

Official data showed job vacancies fell to 10.70 million last month, while analysts expected 10.99 million shares, compared to 11.30 million jobs in the previous reading. 

US stock indices declined on Tuesday amid geopolitical tensions in US-China relations. 

US House of Representatives President Nancy Pelosi announced a visit to Taiwan today amid Chinese condemnation. 

China threatened military action due to this visit, an considered it a breach of US-China current relationship. 

China considers Taiwan a rogue Chinese territory and has threatened countless times to take over the island.

Dow Jones fell 0.6% to 32,601 as of 14:49 GMT, while S&P 500 declined 0.2% to 4,111, as NASDAQ added 0.1% to 12,374. 

Oil prices rose in European trade for the first time in three sessions, holding above three-week lows amid rising geopolitical tensions in Taiwan.

Markets also await tomorrow's OPEC + meeting, which will include Russia, to decide their output in September. 

Oil Prices

US crude rose 1.5% to $95.13 a barrel, while Brent climbed 1.4% to $101.12 a barrel off July 15 lows at $98.54.

US crude lost 4.3% yesterday, marking three-week lows at $92.44, while Brent shed 3.5% on global demand concerns. 

Taiwan Tensions 

US officials prepare to visit Taiwan today in an official visit, amid strong opposition by Chinese authorities and US attempts to calm Chinese nerves.

However a deliberately obtuse stance by the US on Taiwan makes it more difficult to ascertain the true purpose of the visit.

China responded by imposing new tariffs on Taiwanese goods, with several Chinese military aeroplanes flying near Taiwanese borders.

OPEC Plus

Tomorrow, OPEC Plus will hold its monthly meeting that includes Russia to decide September quotas, with many analysts expecting no change.