Summary World oil prices fell on Friday on profit-taking, one day after striking three-month peaks.
LONDON - World oil prices fell on Friday on profit-taking, one day after striking three-month peaks on upbeat Chinese economic data, a weaker dollar and reports of a cut in Saudi Arabian crude production.
Brent North Sea crude for delivery in February slid 69 cents to $111.20 a barrel in London deals approachig mid-day in the British capital.
New York s main contract, light sweet crude for February or West Texas Intermediate (WTI), dropped 30 cents to $93.52 a barrel.
"Crude oil prices gave back yesterday s gains and slid lower on Friday, due to some profit-taking following a stronger US dollar and mixed global equity markets," said analyst Myrto Sokou at the Sucden Financial Research brokerage.
"It seems that news that Saudi Arabia cut oil production initially supported the oil market but failed to give some further upside momentum."
Brent oil had soared on Thursday to $113.29, reaching the highest level since October 18. New York crude had meanwhile touched $94.70, a level last witnessed on September 19.
"We re seeing some profit-taking after the ticking up of oil prices yesterday," added Jason Hughes, the head of premium client management at IG Markets in Singapore.
Prices had rallied on Thursday after a surge in China s trade surplus sparked hopes that the world s second-largest economy and biggest energy user was emerging from its slumber.
News of a crude production cut by number-one oil exporter Saudi Arabia also supported prices, Brokerage Phillip Futures added in a report.
The country slashed oil production by 700,000 barrels per day (bpd) to nine million bpd during the last two months of 2012, the report stated.
Official data released on Friday showing a sharp slowdown in China s inflation rate in 2012 as well as Japan s announcement of fresh stimulus package had little impact on crude markets, Hughes noted.
Oil was also boosted on Thursday by the European Central Bank s decision not to cut interest rates, which was coupled with a comment from ECB chief Mario Draghi that the group s decision was "unanimous."
Draghi s comments suggested interest-rate policy was off the table for the foreseeable future and helped push the dollar lower.
A weaker dollar can make dollar-priced crude cheaper for buyers using rival currencies, in turn stimulating oil demand and prices.
