Oil prices fell on Friday as the U.S. dollar rose against the euro, weakening the purchasing power of buyers using other currencies.
Light, sweet crude for September delivery dropped 1.01 dollars, or 1.4 percent, to settle at 70.93 dollars a barrel on the New York Mercantile Exchange.
The contract initially rose after the release of the encouraging jobs data which showed the U.S. jobless rate unexpectedly dropped to 9.4 percent from 9.5 percent in July, adding to optimism that the economy was turning around.
However, oil prices began to drop as the dollar got stronger against the euro. The Dollar Index rose more than 1.2 percent, undermining demand for dollar-priced assets such as oil used to hedge against inflation.
In London, Brent crude for September delivery dropped 1.41 dollars to 73.42 dollars a barrel on the ICE Futures exchange.
Light, sweet crude for September delivery dropped 1.01 dollars, or 1.4 percent, to settle at 70.93 dollars a barrel on the New York Mercantile Exchange.
The contract initially rose after the release of the encouraging jobs data which showed the U.S. jobless rate unexpectedly dropped to 9.4 percent from 9.5 percent in July, adding to optimism that the economy was turning around.
However, oil prices began to drop as the dollar got stronger against the euro. The Dollar Index rose more than 1.2 percent, undermining demand for dollar-priced assets such as oil used to hedge against inflation.
In London, Brent crude for September delivery dropped 1.41 dollars to 73.42 dollars a barrel on the ICE Futures exchange.
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