Oil climbs 2% to six-week high, dollar at two-week highs

Oil futures rose over 2% in American trade to December 7 highs, while the dollar index rose to January 4 highs, following earlier data from the US, the world's largest energy importer and producer, while US-China trade talks progress. 

As of 06:08 GMT, US crude futures due in February rose 2.58% to $52.23 a barrel, while Brent March futures rallied 2.11% to $62.48 a barrel, as the dollar index climbed 0.29%. 

Earlier US data showed industrial production rose 0.3% in December, slowing down from 0.4% while edging estimates of 0.2%. 

The capacity utilization rate rose to 78.7% from 78.6%, while analysts expected no change. 

The University of Michigan released its consumer sentiment survey, showing a steep drop to 90.7 in January from 98.3 in December, matching expectations. 

The Energy Information Administration reported a drawdown of 2.7 million barrels in US crude stocks in the week ending January 11, compared to a 1.7 million drop in the previous reading, while analysts expected a 1.4 million decline, with total stocks down to 437.1 million barrels, marking them 8% above five-year averages for this time of year. 

Gasoline stocks rose 7.5 million barrels, making them 6% above averages, while distillate stocks, including heating fuel, rose 3 million barrels, making them 3% below averages. 

US output rose 200 thousand bpd last week to a total of 11.9 million bpd, a record high. 

Otherwise, Russian energy minister Alexander Novak announced plans to accelerate the pace of output cuts this year, with the company focused on gradual ones to avoid instability. 

US Oil Rig Count 

Baker Hughes, a US oil services company, reported a drop of 4 rigs in the US oil rig count last week to a total of 873 rigs, after reports US output steadied at 11.7 million bpd, a record high.