Oil prices settle lower as dollar advances

Oil futures tilted lower in Asian trade as the dollar index bounded from July 4 lows, ahead of major US data later today.

As of 05:09 GMT, US crude futures due in August fell 0.12% to 90.58 a barrel, while Brent September futures fell 0.06% to $96.48 a barrel, as the dollar index rose 0.02% to 106.36. 

From the US, non-farm labor productivity is expected down 4.6% in the second quarter, while labor unit costs are expected up 9.4%. 

China announced yesterday new military maneavours around Taiwan amid ongoing talks between US and Chinese military to discuss the Taiwan situation. 

China also announced plans to stop cooperation with US on crime combat, triggering further tensions between both sides. 

Latest Chinese data showed oil imports rose to 8.79 million bpd away from four-year lows as air travel activities improved after lifting off Covid restrictions.

Latest World Health Organization data showed Covid 19 infections at 579.09 million worldwide, with the death toll at 6.407 million.

Baker Hughes data showed US oil rigs fell 7 rigs last week to 598 rig off March 2020 highs, the first decline in ten weeks, while US production steadied at 12.1 million bpd, the highest since April 2020.

US output is down 1 million bpd, or 8% from record highs at 13.1 million bpd scaled in March 2020.