WASHINGTON (dpa-AFX) - Oil prices fell sharply on Friday as uncertainty in the Federal Reserve's rate path boosted the dollar to a two-year high.
Benchmark Brent crude futures were down 1 percent at $72.16 a barrel in European trade, hit by a stronger dollar and fears of stagnant Chinese demand. WTI crude futures fell 2.5 percent to $68.80.
The dollar was set to end the week on a high note after the Federal Reserve signaled fewer interest rate cuts next year at its final interest-rate setting meeting of the year.
China's oil consumption is set to peak by 2027, state refining giant Sinopec said on Thursday, as diesel and gasoline demand weaken in the world's biggest oil importer.
A lack of details on Chinese stimulus measures and signs of reduced U.S. fuel consumption also fueled worries about weakening demand.
Markets also grappled with the impending U.S. government shutdown and U.S. President-elect Donald Trump's fresh threats of sweeping tariffs on U.S. trading partners, a key part of his presidential campaign.
Trump today warned of potential tariffs on the European Union if the bloc does not cut its growing deficit with the United States by making large oil and gas trades with the world's largest economy.
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