Oil futures fell in American trade with US crude plumbing September 18 lows, while Brent hit September 24 lows, as the dollar index rebounded from September 27 lows for the third session, following earlier data from the US, the world's largest energy consumer.
As of 05:06 GMT, US crude futures due in November fell 0.50% to $69.40 a barrel, while Brent December futures slipped 0.29% to $79.82 a barrel, as the dollar index rose 0.28% to 95.85, marking October 10 highs.
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.
Other US data today showed the Philly Manufacturing Index down to 22.2 from 22.9, while unemployment claims fell 5 thousand in the week ending October 13 to 210 thousand, edging estimates of 211 thousand.
Continuing claims fell 13 thousand to 1.640 million in the week ending October 6, as analysts expected 1.663 million.
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.
Otherwise, OPEC General Secretary Muhammad Barkindo expected Indian oil demand to increase 3.7% by 2040 to 5.8 million bpd, representing 40% of global demand growth, while adding the oil sector requires investments of up to $11 trillion to meet future demand on oil.
He noted that many consumers expressed concerns over supply shortages, as OPEC and allies continue to cut output according to a recent deal, while US sanctions Iranian exports.
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.
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 addition in four weeks.
US output rose recently to 11.2 million bpd, almost surpassing Russia's 11.21 million bpd.