Oil prices rise 1%, dollar adds to gains

Oil futures rose nearly 1% in Asian trade as Brent futures climbed from February 22 lows, while US crude prices rose from February 3 lows, while the dollar index rose from June 29 lows. 

That comes ahead of a batch of US data later today, while US-China tensions develop as well. 

As of 05:42 GMT, US crude futures due in September rose 0.99% to $88.80 a barrel, while Brent October futures rose 0.58% to $94.18 a barrel, as the dollar index rose 0.03% to 106.51. 

From the US, building permits are expected down to 1.63 million, while building starts are expected down to 1.53 million from 1.55 million.

US industrial production is expected up 0.3% in July, compared to a 0.2% drop in June. 

Two-year and five-year treasury yields curves remain reversed, in an ominous sign for an upcoming depression in the US economy.

Otherwise, a party of US lawmakers have arrived at Taiwan to discuss relations with Taiwanese government and investments.

China continues to condemn such moves and developing relations between US and Taiwan, and has already begun threatening military actions around Taiwan as a threat.

Otherwise, China continues to face a very stubborn Covid 19 wave that continues to impede growth, with World Health Organization reporting 585.05 million global infections worldwide so far, with the death toll at 6.425 million.

Baker Hughes data showed US oil rigs rose by 3 to 601 rigs, while rising in July for the 24th month in a row, with US output stabilizing at 12.1 million bpd, the highest since April 2020.

US output remains down a million bpd, or 8% from record highs at 13.1 million bpd in March 2020.