Oil prices fell on Friday, heading for a second weekly decline as a strong dollar and mixed economic signals weighed on investor sentiment.
Brent crude oil prices were down 38 cents, or 0.5%, at $84.73 a barrel by 0035 GMT. WTI Crude futures were down 50 cents, or 0.6%, at $82.32 a barrel.
Brent crude oil fell 0.3% for the week, while WTI traded marginally higher after falling as much as 0.2% on Friday.
The U.S. dollar index rose for a second straight session after stronger-than-expected data on the U.S. labor market and manufacturing sector earlier in the week.
A stronger U.S. dollar is dampening demand for dollar-denominated oil.
Meanwhile, a lack of concrete stimulus from top oil importer China weighed on commodities.
Official data showed China’s economy grew by a slower-than-expected 4.7% in the second quarter, triggering concerns about the country’s oil demand.
Worsening forest fires in Canada threaten oil sands output. Short-term supply concerns have kept losses to a minimum.
On the economic front, Japan’s core inflation picked up in June, opening the door for an interest rate hike in the oil market.
Oil prices found some support in the previous two sessions after a bigger-than-expected weekly decline in U.S. oil inventories. However, analysts said broader inventory trends have been trending lower than expected this month. They noted that crude inventories were being drawn at a slower pace than normal for this time of year and that global fuel stocks rose last week.
Meanwhile, the OPEC+ group of producers is unlikely to recommend changes to the group’s production policy, including plans to begin easing a layer of oil output cuts from October, said on Thursday.
