LONDON: Oil prices slid on Friday, pressured once again by a stronger dollar, as dealers speculated over whether the Federal Reserve will lift interest rates sooner rather than later, analysts said.
In midday London trading, Brent North Sea crude for delivery in December shed 90 cents to $85.37 a barrel.
US benchmark West Texas Intermediate for December fell 90 cents to $80.22 a barrel compared with Thursday's closing value.
Singapore's United Overseas Bank said crude prices faced downward pressure "as expectations that US interest rates may rise sooner than previously thought pushed the dollar to its highest in more than three weeks".
On Thursday, the US Commerce Department said the US economy, the world's biggest, grew at an annualised 3.5 percent in July-September owing to stronger exports and defence spending. The figure exceeded expectations for a 3.0 percent rise.
The reading, coupled with upbeat comments about the jobs market from the Fed on Wednesday, stoked speculation that the bank could hike interest rates earlier than its timetabled mid-2015 date.
With rates widely expected to rise next year, traders have piled back into the dollar, pushing it back above 110 yen.
A stronger greenback makes dollar-priced oil more expensive for buyers using weaker currencies, denting demand and pushing prices lower.
Oil prices had also fallen Thursday as the dollar also rebounded after the US Federal Reserve decided on Wednesday to end its quantitative easing stimulus policy.
"Crude came under pressure ... following dollar strength in the wake of the Fed ending its asset-purchase program," said Deutsche Bank analysts in a note to clients.
A slew of US economic data to be released later Friday, including on personal spending, personal income and consumer sentiment, will next be in focus among investors, analysts said.
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