(RTTNews) - The price of crude oil slipped back below $88 Friday morning amid concerns over demand growth. However, slowing inflation in China supported crude prices. China's annual inflation rose 6.2 percent in August, cooling from a 37-month high of 6.5 percent in July that raised hopes China may stop hiking interest rates and allow faster economic growth.
Light Sweet Crude Oil (WTI) futures for October delivery, were down $1.17 to $87.88 a barrel. Yesterday, oil ended marginally lower as the dollar strengthened when Federal Reserve Chairman Ben Bernanke failed to signal specific easing measures to be taken by the Fed later this month.
Thursday during market hours, the EIA revealed that U.S. crude oil inventories dipped by 4.00 million barrels, while gasoline stocks edged up 200,000 barrels in the week ended September 02. Analysts were expecting crude oil inventories to dip by 2 million barrels and gasoline stocks to ease by 1.4 million barrels last week.
This morning the U.S. dollar was extending gains versus a basket of currencies as Federal Reserve Chairman Ben Bernanke failed to signal specific easing measures to be taken by the Fed later this month. The buck surged to a 7-month high versus the euro and near a 2-month high against sterling.
