Oil rises for fourth session, dollar edges up

Oil prices rose in Asian trade as the dollar index gained ground as well, following earlier Chinese data and ahead of US data today. 

As of 04:27 GMT, US crude futures rose 0.50% to $54.74 a barrel, while Brent rose 0.59% to $64.99 a barrel. 

Earlier Chinese data showed inflation rose 1.7%, while producer prices rose 0.1%. 

In an expected step, President Donald Trump is reportedly considering an extension to the negotiation period with China on trade for another 60 days. 

Beijing and Washington reached a 90-day truce last year to reach an agreement and avoid tariff hikes. 

The current truce is scheduled to end on March 2, with no deal still in sight. 

Chinese President Xi Jinping is set to meet the US delegation tomorrow to discuss a possible trade agreement. 

Now investors await US data, with import prices expected down 0.1%, while the Empire State Manufacturing Index is expected up to 7.1. 

US industrial production is expected up 0.1%, while the capacity utilization rate is estimated up to 78.8%. 

The Energy Information Administration reported an increase of 3.6 million barrels in US crude stocks last week to a total of 450.8 million barrels. 

Now markets look forward to US-China trade talks in Beijing, with President Xi Jinping expected to meet the US delegation to hammer out hanging issues. 

US President Donald Trump opened the door for extending the truce beyond March to give another chance for an agreement. 

White House officials asserted in recent statements that Trump intends to meet his Chinese counterpart soon.

OPEC President Suhail Al Mazroui asserted the importance of reaching balance in the oil market by the end of the current quarter, adding he expects oil prices to steady as well in this quarter. 

Otherwise, Venezuelan output was forced down by recent US sanctions and amid tensions and political turmoil following recent elections, with even more output drops expected soon. 

Saudi oil minister Khalid Al Falih said to Financial Times that Saudi Arabia plans to produce 9.8 million bpd in March, and for exports to fall to 6.9 million bpd. 

That means a 500 thousand bpd cut from the levels promised by Saudi Arabia in the deal to cut global output with OPEC.