02:38 PM EDT, 07/12/2024 (MT Newswires) -- West Texas Intermediate (WTI) crude oil closed lower on Friday after the United States reported its Producer Price Index (PPI) rose more than expected last month, countering some of the day-prior optimism spurred by slowing consumer-price inflation.

WTI crude oil for August delivery closed down US$0.41 to settle at US$82.21 per barrel, while September Brent crude, the global benchmark, was last seen down US$0.14 to US$85.26.

The Bureau of Labor Statistics on Friday said producer prices rose 0.2% in June, unchanged from May and above expectations for a 0.1% monthly rise, according to Marketwatch. Excluding volatile items, core PPI rose 0.4% from May after being unchanged that month, while expectations called for a 0.2% monthly rise.

The dollar rose off overnight lows following the data but failed to regain ground lost on Thursday after the Consumer Price Index rose less than expected last month, raising expectations for interest-rate cuts from the Federal Reserve. The ICE dollar index was last seen down 0.3 points to 104.13.

Still fundamentals appear to be sound for oil, with high summer demand cutting U.S. oil inventories and OPEC+ continuing 2.2-million barrels per day of voluntary production cuts. However weaker demand from China, the No.1 importer, is clouding the outlook after the country reported an outsized drop in imports last month.

"Crude oil imports fell 11% y/y to 46.45mt in June. Nevertheless, lower product inventories and return of refineries after seasonal maintenance will likely increase refinery operating rates and boost crude oil imports in Q3 2024," ANZ Bank noted.