Oil prices drop amid demand fears, dollar strength

New York [US], October 15: Oil prices fell sharply on Friday, weighed by a strong U.S. dollar and prospects of weaker energy demand.
The West Texas Intermediate for November delivery decreased 3.5 U.S. dollars, or 3.9 percent, to settle at 85.61 dollars a barrel on the New York Mercantile Exchange. Brent crude for December delivery lost 2.94 dollars, or 3.1 percent, to close at 91.63 dollars a barrel on the London ICE Futures Exchange.
In their respective monthly reports released earlier this week, both the International Energy Agency and the Organization of the Petroleum Exporting Countries revised their forecasts for oil demand noticeably downwards, due to stronger economic headwinds.
Also weighing on prices is a continued momentum in the U.S. dollar. The dollar index, which measures the greenback against six major peers, soared 0.84 percent to 113.3090 in late trading on Friday, following a similar rise in the prior session. Historically, the price of oil is inversely related to the price of the U.S. dollar.
For the week, the U.S. crude benchmark sank 7.6 percent, while Brent pulled back 6.4 percent, based on the front-month contracts.
Source: Xinhua