- Oil prices decline, with Brent and WTI losing more than $1 each.
- US dollar index climbs 0.8% to 96.02.
- Dollar index on pace for weekly gain of more than 2.7%.
The price of oil retreated on Friday, as the US dollar ended the week on a surge following mixed inflation data.
Brent crude fell $1.20 to $65.34 a barrel after climbing above $66 on Thursday. Brent eased off 2015 highs this week, falling toward $64 a barrel before staging a rally.
West Texas Intermediate (WTI) for July delivery declined $1.09 to $59.63 after trading near 2015 highs on Thursday.
Oil prices have rallied nearly 40 percent since January, as geopolitical conflicts in the Middle East and signs of rising demand in Asia helped lift crude from more than six-year lows. However, with the market expected to be well supplied for the next several years, oil prices will remain subdued. The US shale boom and peak OPEC production will likely keep oil prices below $50 a barrel by 2020, according to the latest forecast by Goldman Sachs.
Oil traded inversely with the US dollar on Friday, as is often the case. The dollar index, a trade-weighted average of the greenback against six competitor currencies, climbed 0.8 percent to 96.02. The index is poised to end the week on a gain of more than 2.7 percent.
In economic data, US inflation weakened by the widest margin since October 2009, although underlying inflation showed signs of improvement. The consumer price index declined 0.2 percent in the 12 months through April, stemming largely from declining energy costs. So-called core CPI, which excludes energy and food items, rose 1.8 percent annually, official data showed.