July 19 (Reuters) - Oil prices fell on Friday as a
strong dollar, mixed economic signals and concern over China's
economy weighed on investor sentiment.
Brent crude prices fell by 41 cents, or 0.5%, to
$84.70 a barrel by 0650 GMT. U.S. West Texas Intermediate crude
futures fell 49 cents, or 0.6%, to $82.33 a barrel.
For the week, Brent was down 0.3%, while WTI was trading
marginally higher.
The U.S. dollar index climbed for the second consecutive
session after stronger-than-expected data on the U.S. labour
market and manufacturing earlier in the week. A stronger
greenback dampens demand for dollar-denominated oil from buyers
holding other currencies.
A lack of concrete stimulus measures from top oil importer
China has also weighed on commodities overall, ANZ analysts said
in a note.
China's economy grew at a slower-than-expected 4.7% pace in
the second quarter, official data showed, sparking concerns
about the country's oil demand.
"Concerns over supply in the short term kept the losses
minimal," ANZ said, however, referring to worsening wildfires
threatening production in Canadian oil sands.
Elsewhere on the economic front, Japan's core inflation
perked up in June, leaving the door open for an interest rate
hike in the major oil market.
Oil prices found some support in the prior two sessions
after the U.S. government reported a bigger-than-expected weekly
decline in oil stockpiles.
Analysts at consultancy firm FGE, though, said broader
inventory trends look more bearish than expected this month.
They noted U.S. crude stocks have drawn at a slower-than-usual
pace for this time of the year and global fuel stocks rose last
week.
Meanwhile, the OPEC+ producer group is unlikely to recommend
changing the group's output policy, including a plan to start
unwinding one layer of oil output cuts from October, three
sources told Reuters on Thursday.