Crude oil futures ended lower on Friday weighed down by data showing a bigger than expected increase in U.S. producer prices in the month of June. The Labor Department said its producer price index for final demand rose by 0.2 percent in June following a revised unchanged reading in May. However, expectations of an interest rate cut by the Federal Reserve in September, and recent forecasts saying oil demand will be fairly strong this year, helped limit the commodity's losses. OPEC and the International Energy Agency (IEA) again forecasted different short and medium-term global oil demand growth, but it is widely believed that there will be positive growth trajectory in the near term due to possible reduction in interest rates.
Benchmark U.S. crude oil futures for August delivery fell $ 0.44 or 0.53% to $ 82.18 per barrel on the New York Mercantile Exchange. Brent crude for September delivery dropped $0.37 or about 0.43% to $85.03 per barrel on London's Intercontinental Exchange.