Brent crude futures fell 42 cents, or 0.4%, to $96.54 a barrel. barrel 0043 GMT after rising 1.3% in the previous session. West Texas Intermediate (WTI) crude futures fell 56 cents, or 0.6%, to $88.52 a barrel, halving gains from the previous session.
Nevertheless, both benchmark oil contracts were on course for weekly upside, with Brent heading for gains of more than 3% and WTI more than 4%.
Friday’s decline came as the dollar index rose to 110.57, making oil more expensive for buyers of other currencies.
Analysts said the strong rebound in U.S. gross domestic product in the third quarter, reported Thursday, underscored the resilience of the world’s largest economy and biggest oil consumer.
“From an oil market perspective – despite high interest rates – this is a direct driver of your demand outlook,” said Baden Moore, head of commodity analysis at National Australia Bank.
He said market volatility is likely to be on the rise as global inventories are low, European sanctions on Russian crude are due to take effect in December and Chinese demand is rising.
Brent’s growing premium to WTI has been driven by signs of increased refinery output in China, Europe’s crude suckers ahead of the Russian oil embargo and pending supply cuts by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+.
“The market remains wary of the looming chances of European purchases of Russian crude ahead of the sanctions coming into effect on December 5,” analysts at ANZ Research said in a note.