Global oil prices dipped on Friday, weighed down by a strengthening US dollar, although China’s relentless thirst for crude and OPEC-led supply cuts prevented further falls.
US West Texas Intermediate (WTI) crude futures were at $56.58 a barrel at 0714 GMT, down 11 cents, or 0.2 per cent from their last settlement.
Brent crude futures, the international benchmark for oil prices, were down 8 cents, or 0.1 per cent, at $62.12 a barrel, reports Reuters.
Traders said a stronger dollar, which has gained over 0.9 per cent this month against a basket of other leading currencies, was weighing on prices.
A rising greenback attracts financial traders who switch investments between commodity futures and foreign exchange.
Preventing prices from sliding further was booming oil demand from China, which will this year overtake the United States as the world’s biggest crude importer.
China’s crude oil imports rose to 37.04 million tonnes in November, or 9.01 million barrels per day (bpd), the second highest on record, data from the General Administration of Customs showed on Friday.
Bank of America Merrill Lynch, meanwhile, said healthy global demand and tight supplies should see Brent crude oil rise to $70 per barrel by mid-year.
US investment bank Jefferies said it expects 2018 global oil demand growth of 1.5 million bpd, driven by near 10 per cent demand growth in China.
On the supply side, oil prices have been receiving support from the OPEC and a group of non-OPEC producers, most importantly Russia, which has been withholding supplies to tighten the market.