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.