Oil settles higher as dollar backs off two-month high

Oil futures tilted higher in American trade as the dollar index lost ground, following earlier data from the US, the world's largest energy consumer, and after remarks by oil ministers in Saudi Arabia and Iraq. 

As if 05:52 GMT, US crude futures due in November rose 0.22% to $71.50, while Brent December futures rose 0.21% to $80.60 a barrel, as the dollar index slipped 0.13% to 95.10 away from two-month highs. 

Earlier US data showed retail sales rose 0.1%, same as August and missing estimates of 0.7%, while core prices fell 0.1%, missing estimates of a 0.4% addition. 

The Empire State Manufacturing index rose to 21.1 from 19 in August, besting estimates of 20.4, while wholesale inventories rose 0.5%, adding to the 0.6% increase in July. 

Otherwise, Saudi oil minister Khalid Al Falih asserted Saudi Arabia stands ready to fulfill Indian demand, noting that current production stands at 10.7 million bpd, with expectations of further increases next month. 

Iraqi oil minister Jabbar Alluaibi also said Iraq intends to raise output to 4 million bpd in the first quarter of 2019, adding that current exports stand at 3.62 million bpd, the highest ever. 

IEA, OPEC Monthly Reports 

The International Energy Agency cut forecasts for global oil demand growth by 110 thousand bpd ti 1.28 million bpd in 2018, and 1.36 million bpd in 2019, while cutting estimates for demand on OPEC's oil by 300 thousand bpd to 32.0 million and 31.6 million in 2018 and 2019 respectively. 

The IEA estimated total global output to increased by 1.4 million bpd last week compared to May, however as pressures mount on the market, prices are expected to remain high in the foreseeable future. 

Last week, OPEC released its monthly report, at which it also expected weaker demand on its oil by 300 thousand bpd to 31.8 million bpd, while expecting US shale output to increase by 900 thousand bpd. 

Otherwise, the Energy Information Administration cut its forecasts for global oil demand growth by 60 thousand bpd to 1.52 million bpd in 2018, while expecting growth to speed up to 20 thousand bpd in 2019. 

Oil prices are up 20% so far this year as OPEC and Russia carry on their agreement to cut global output to ease a previous supply glut, while the US withdrew from the Iran deal and sanctioned their oil exports.

US Oil Rig Count 

Baker Hughes, a US services company, reported an increase of 6 in the oil rig count to 869 rigs, the first such increase in four weeks.

US output rose recently to 11.2 million bpd, almost surpassing Russia's 11.21 million bpd.