Oil prices fell on Friday after the US Federal Reserve (Fed) signaled a more cautious approach to reducing interest rates next year, coupled with the strength of the US dollar.
The international oil benchmark of Brent crude declined by 0.15% to $72.10 per barrel at 11.09 a.m. local time (0809 GMT), down from the previous session's close of $72.21.
The US benchmark West Texas Intermediate also fell by 0.26% to $68.87 per barrel, compared to $69.05 at the close of the prior session.
At this week's meeting, the Fed indicated that it would take a more gradual approach to interest rate cuts in the coming period.
Future rate adjustments will depend on incoming data and evolving economic conditions, the bank said in a statement on Wednesday.
Future rate adjustments will depend on incoming data and evolving economic conditions, it added.
Speaking after the meeting, Fed President Jerome Powell stated that the monetary policy stance is significantly less restrictive and that they will be 'more cautious' when evaluating future interest rate cuts.
The expectation that the Fed may slow the pace of policy rate cuts has boosted demand for the dollar.
Predictions that the tax cuts, immigration restrictions and import tariffs promised by Donald Trump, who will take office in January, will drive inflation in the US also contribute to the rise of the dollar.
The US dollar index reached its highest level in 2 years at 108.125 on Friday. The strong dollar is expected to reduce demand by making oil more expensive for foreign currency users.
Concerns that demand in China, the world's largest oil importer, will decline continue to put pressure on prices.
Fears that that the details of a planned incentives package in China will fall short of revitalizing the economy and expectations of gradually weakening demand in the world's second-largest oil consumer, are contributing to the decline in prices.
By Zeynep Beyza Kilic
Anadolu Agency
energy@aa.com.tr