By Polya Lesova, MarketWatch
NEW YORK (MarketWatch) — Oil futures dropped on Friday, as investors weighed strength in the U.S. dollar against positive news about the manufacturing sector in the New York region.
Oil for March delivery CLH3 -0.37% fell 37 cents, or 0.4%, to $96.94 a barrel in electronic trading on Globex.
A rise in the dollar against other major currencies weighed on oil prices, because it made them more expensive for holders of other currencies.
The dollar index DXY +0.10% , which tracks the greenback’s performance, climbed to 80.472 from 80.336 in late North American trading Thursday.
Encouraging economic news, however, capped losses in oil prices.
The Empire State manufacturing index moved into positive territory for the first time since July, the New York Federal Reserve Bank said Friday. The index rose to 10.0 in February from a negative 7.8 in the prior month. Economists expected the index to print at negative 2.0 in February. Read more on Empire State.
March oil futures gained modestly on Thursday, after data showed a decline in weekly jobless claims, boosting the outlook for demand.
Polya Lesova is MarketWatch's New York deputy bureau chief. Follow her on Twitter @PolyaLesova.
