Oil Prices Continue to Fall on Demand Fears, Strong Dollar

Early trading on Friday saw oil prices fall, extending their losses from earlier in the week, as concern over tight supply was overshadowed by growing worry that sharp interest rate hikes will hinder global growth and reduce fuel demand.

After falling 3.5% to a one-week low in the prior session, Brent oil futures dropped 22 cents, or 0.2%, to $90.62 a barrel as of 7.52 a.m. Thai time.

Futures for U.S. West Texas Intermediate (WTI) crude fell 25 cents, or 0.3%, to $84.85 a barrel, continuing the previous session’s decline of 3.8%.

According to Reuters, both benchmarks are on track for a third consecutive weekly decline, worsened by a strong US dollar, which makes oil more expensive for buyers using other currencies.

The International Energy Agency stated this week that oil demand growth would slow in the fourth quarter.