World oil prices flattened this evening as the US dollar strengthened at the end of a volatile week for markets. US crude rose 27 cents to $79.33 a barrel, while Brent North Sea crude dropped eight cents to $77.70.
The dollar rose to fresh nine-month highs against the euro after a surprise move by the US Federal Reserve to hike one of its interest rates. A stronger dollar makes dollar-priced oil more expensive for buyers using weaker currencies, hitting demand.
Analysts said oil prices were holding up despite US inventory figures yesterday which indicated weaker demand for energy.
Crude oil stockpiles rose by nearly 3.1 million barrels to 334.5 million barrels for the week ended February 12, a much bigger rise than expected.
