Oil rises 1% as dollar backs off week high

Oil futures rose in American trade with US crude climbing off September 18 lows, while Brent rebounded from September 24 lows, still on track for second weekly losses, while the dollar index backed off October 9 highs. 

That comes after a spate of data from China, the world's largest energy importer, and the US, the world's largest consumer. 

As of 05:42 GMT, US crude futures due in November rose 0.98% to $69.32 a barrel, while Brent December futures rallied 1.17% to $80.20 a barrel, as the dollar index slipped 0.22% to 95.69 away from week highs. 

Earlier Chinese data showed the seasonally adjusted reading for third-quarter GDP growth down to 1.6% as expected from 1.8%, and also down to 6.5% y/y from 6.7%, the slowest such pace since the financial crisis. 

The unemployment rate fell to 4.9% from 5% in August, while retail sales rose 9.2% y/y, as industrial production slowed down to 5.8% from 6%. 

Government data also showed net refinery output in China rose to a new record 12.49 million bpd in September. 

The slowdown in Chinese growth in the third quarter weighed on oil performance, with oil futures in the Shanghai Exchange falling 0.4% today to 551.8 yuan per barrel, widening this week's losses to 3.7%.  

Otherwise, US existing home sales fell 3.4% in September to an annualized 5.15 million units, compared to a 0.2% dip in August to 5.33 million, while analysts expected a 0.9% drop to 5.29 million units. 

The Federal Reserve recently released the minutes of its September 25-26 meeting, at which the Federal Open Market Committee voted to increase interest rates by 25 basis points for the third time this year to just below 2.25% as expected, while carrying on plans to normalize the balance sheet. 

The Fed forecast another rate hike this year, and three more next year, and another in 2020, as the economy blisters ahead. 

US Inventory Build 

On Wednesday, the Energy Information Administration released its report on crude stocks, showing a buildup of 6.5 million barrels in the week ending October 12, adding to the 6 million increase in the previous reading, while analysts expected only a 1.6 million addition, with total stocks now up to 416.4 million barrels, 2% above five-year averages for this time of year. 

Gasoline stocks fell 2.0 million barrels, still 7% above five-year averages, while distillate stocks, including heating fuel, fell 0.8 million barrels, making them 3% below averages.

US Oil Rig Count 

Baker Hughes, a US services company, reported an increase of 4 in the oil rig count to 873 rigs, second such weekly increase in a row. 

US output fell 300 thousand bpd last week to 10.9 million bpd due to temporary shutdowns of oil rigs in response to Hurricane Michael.