WTI drops on higher US consumer inflation

Oil prices were lower in New York on Friday on worries that demand could fall after a new report that US consumer prices were up 0.8 percent in November.

While the International Energy Agency issued an upward revision on oil demand for next year, a number of analysts believe that the IEA is not taking signs that demand is dropping into consideration.

The Organization of Petroleum Exporting countries also raised its demand growth forecast for 2008, but also recognized that economic growth looks to be slowing, while the US Energy Department recently cut its global demand forecast.

West Texas Intermediate crude for January delivery was down 95 cents near the close of floor trade on the New York Mercantile Exchange to $91.30 per barrel, but January contracts for Brent crude added 30 cents to $92.42 per barrel on the ICE Futures Europe exchange in London.

Nymex January gasoline dropped 4 cents to $2.33 per gallon, while January heating oil traded even at $2.62 per gallon.

March natural gas fell 21 cents to $7.13 per million British thermal units.