Crude oil prices fell on Friday as the dollar surged higher after data showing a steep acceleration in U.S. inflation raised fears of more aggressive rate hikes by the Federal Reserve.
Reports saying Shanghai has imposed fresh Covid-related restrictions in several parts due to a surge in new cases have once again raised concerns about outlook for oil demand.
China said it will reimpose Covid-19 lockdowns in eight out of 16 of Shanghai's districts after the country's largest economic hub recorded a cluster outbreak of COVID-19.
Parts of Beijing have also reimposed some restrictions, raising fears of reduced demand from the world's largest crude importer.
West Texas Intermediate Crude oil futures for July ended lower by $0.84 or about 0.7% at $120.67 a barrel, coming further off a 3-month of $123.15 recorded a couple of days ago.
Brent crude futures were down $1.25 or 1.01% at $121.82 a barrel a little while ago.
The U.S. Labor Department showed consumer prices in the country shot up by more than expected in the month of May, raising concerns about the outlook for interest rates.
The Labor Department said its consumer price index jumped by 1% in May after rising by 0.3% in April. Economists had expected consumer prices to increase by 0.7%.
The dollar index climbed to 104.23 before easing slightly to 104.15, still firmly up from the previous close of 103.22.
