Oil prices decline as dollar loses ground
Oil futures tilted lower in Asian trade off March 9 highs as the dollar index fell as well from December 2002 highs, ahead of a spate of US data later today, including Fed Chair Jerome Powell's testimony ahead of Congress.
As of 05:56 GMT, US crude futures due in July fell 0.25% to $104.16 a barrel, while Brent August futures fell 0.28% to $109.91, as the dollar index declined 0.08% to 104.13.
From the US, unemployment claims are expected down by two thousand to 227 thousand by June 18, while continuing claims are expected up by 3 thousand to 1,315 thousand.
US current account deficit is expected up to $275 billion from $218 billion in the fourth quarter, while the manufacturing PMI is expected down to 56 from 57.0 in May.
US President Joe Biden has officially asked Congress to suspend the federal fuel tax valued at 18.4 cents per gallon and asked companies to support consumers and increase refining operations to gasoline.
Otherwise, Chinese President Xi Jinping just agreed on a new healthcare promoting plans, and tech support plans, as the company continues to battle the Covid 19 pandemic.
Otherwise, OPEC General Secretary Muhammed Barkindo asserted the organization is trying to maintain supplies, and opened the door for extending the OPEC + deal with Russia to beyond this year, depending on market conditions.
On the Ukrainian crisis, the Kremlin said the negotiations with Ukraine aren't going very well, especially after aggressive remarks by the Ukrainian government recently on the Crimean Bridge.
Ukrainian government asserted a goal to take back the Crimean Bridge once it acquire weaponry from the US and Europe.
Baker Hughes data showed US oil rigs rose by 4 rigs to 584 rigs last week, the second such increase in a row to March 2020 highs.
Oil rigs rose in May for the 22nd month in row, the longest such streak ever, while US output rose 100 thousand bpd last week to a total of 12 million bpd, the highest since April 2020.
Wall Street declines as markets assess Powell's testimony
US stock indices declined on Wednesday as markets assess Fed Chair Jerome Powell's Congressional testimony.
Powell asserted to the Senate, the Fed's commitment to combat inflationary pressures with all measures available.
He asserted the Fed has enough tools to truly control inflation and bring it back to 2%.
The Fed pointed to strong aspects of the economy, especially in the labor sector and rebounding demand.
Dow Jones fell 0.1% as of 14:17 GMT to 30,490, while S&P 500 declined 0.1% to 3,760, as NASDAQ rose 0.5% to 11,127.
Oil prices decline to 6-week lows as Biden calls for fuel tax suspension
Oil prices declined over 5% in European trade with US crude falling for a second session, hitting six-week lows, while Brent hit five-week lows as US President Joe Biden asked for fuel tax suspension.
The administration is seeking to control gasoline prices after they hit record highs with tensions rising between the White House and oil companies.
Oil Prices
US crude fell 5.75% to $103.21 a barrel, the lowest since May 12, while Brent shed 5% to $108.67 a barrel, a May 19 low.
US crude lost 0.6% on Tuesday, while Brent climbed over 0.5% for another session.
Tax suspension
A Biden administration's official said Biden is expected to ask Congress for a suspension of the fuel tax for three month.
However, both Democratic and Republican lawmakers aren't expected to endorse the move.
Oil Companies
Oil companies are meeting with Biden tomorrow under pressure from the White House to cut down prices.
However, Chevron's CEO said criticizing the oil industry isn't the right way to control prices and face the current challenges.
