Oil prices mixed; stronger dollar weighs on WTI

Crude oil prices closed mixed Friday, with the WTI futures contract under pressure from a stronger dollar and Brent gaining after Scotland rejected independence from the United Kingdom.

US benchmark West Texas Intermediate for October fell 66 cents, closing at $92.41 a barrel.

Brent North Sea crude for delivery in November rose 69 cents to settle at $98.39 a barrel in London, recovering from a two-year low earlier this week.

The WTI contract weakened as the dollar traded at six-year highs against the yen and 14-month highs against the euro.

The greenback gained after the Federal Reserve on Wednesday stuck to its timetable on hiking US interest rates but indicated they could rise more sharply than initially envisaged.

A stronger dollar adds downward pressure to dollar-priced oil, making it more costly for buyers using weaker currencies.

"The expectations for potential US interest rate hikes next year is making the dollar more attractive -- and given its inverse relationship, the crude market less so," said Matt Smith of Scheider Electric.

Demand concerns lingered in the market after official data showed Wednesday that crude stockpiles in the United States, the world's largest consumer of black gold, surged by 3.7 million barrels last week, instead of the 1.2-million barrel decline expected.

Tim Evans of Citi Futures noted the WTI October contract saw some selling ahead of Monday's expiration.

Oil traders also focused on the Scottish referendum due to the presence of large reserves in the North Sea off the coast of Scotland.

Scots rejected independence in a vote on Thursday that left the centuries-old United Kingdom intact but headed for a major shake-up that will give more autonomy to both Scotland and England.

The referendum result helped to lift financial markets Friday as it removed the uncertainty of a UK break-up.

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