Oil prices ease on strong US dollar, mixed global economic news
Crude prices eased about 1% on Friday on worries that global oil demand growth could be reduced by a strong U.S. dollar and negative economic news from some parts of the world.
Prices declined despite signs of improving U.S. oil demand and falling fuel inventories that boosted crude prices to a seven-week high a day earlier.
Brent futures fell 60 cents, or 0.7%, to $85.11 a barrel by 1:41 p.m. EDT (1741 GMT), while U.S. West Texas Intermediate (WTI) crude fell 65 cents, or 0.8%, to $80.64.
The decline pushed WTI out of technically overbought territory for the first time in four days, while Brent futures remained overbought for a fourth day in a row for the first time since early April.
For the week, both crude benchmarks were up about 3% after gaining about 4% last week.
The U.S. dollar rose to a seven-week high versus a basket of other currencies with the Federal Reserve's patient approach to cutting interest rates contrasting with more dovish stances elsewhere.
The Fed hiked interest rates aggressively in 2022 and 2023 to tame a surge in inflation. The higher rates boosted borrowing costs for consumers and businesses, which can slow economic growth and reduce demand for oil.
A stronger U.S. dollar can also reduce demand for oil by making dollar-denominated commodities like oil more expensive for holders of other currencies.
In the world's biggest oil consumer, U.S. business activity crept up to a 26-month high in June amid a rebound in employment, but price pressures subsided considerably, offering hope
