Brent crude oil slipped below $87 a barrel on Thursday as expectations that U.S. interest rates may rise sooner than previously thought pushed the dollar to its highest in more than three weeks.
A 3.5 percent annual rise in third-quarter U.S. gross domestic product reported on Thursday came a day after the U.S. central bank gave a surprisingly upbeat assessment of the economy, reinforcing a more hawkish rate outlook.
While faster growth in the world’s biggest consumer of oil boosts the outlook for demand, a stronger greenback makes dollar-priced commodities such as oil more expensive for buyers using other currencies.
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