Oil prices gain ground as dollar dips ahead of OPEC + meeting

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.