Oil prices gain ground as dollar slips

Oil prices rose in Asian trade with US crude off May 11 lows, while Brent climbed from May 19 lows, as the dollar index rebounded from December 2002 lows.

The gains came ahead of a spate of US data, and following Fed Chair Jerome Powell's Congressional testimony. 

As of 05:41 GMT, US crude futures due in July rose 0.75% to $104.77 a barrel, while Brent August futures rose 0.49% to $110.35 a barrel, , as the dollar index fell 0.15% to 104.22.

From the US, new home sales are expected down to 590 thousand, compared to an April drop to 591 thousand, while the UoM consumer sentiment survey is expected down to 50.2 from 58.4. 

Fed Chair Jerome Powell finished up his Congressional testimony, amid concerns about the US economy falling in deep recession due to the Fed's monetary tightening path.

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.