2017.12.0802:05:00UTC+00Oil Steady as Stronger Dollar Weighs on Markets

Oil prices were on a steady footing on Friday, weighed down by the appreciation of the U.S. dollar but propped up by China's strong appetite for crude amid OPEC-led production cuts that have already rebalanced the market this year.

U.S. WTI crude futures traded at $56.68 per barrel, almost unchanged from their last close at $56.69. Meanwhile, Brent crude futures stood almost flat at $62.21 per barrel, higher by just one cent.

Traders said a stronger dollar, which has risen by 0.8 percent this month, versus a basket of other major currencies, was affecting prices.

A rally in the U.S. dollar entices financial traders who switch investments between commodity futures and foreign exchange. A solid dollar is also perceived by many as a hindrance in the crude prices' rally, as it makes the dollar-denominated commodity more expensive in countries that use other currencies.

Despite the dollar's strength, China's increasing oil demand this year is seen to help it overtake the U.S. as the world's biggest importer.

China's crude oil imports increased to 37.04 million tonnes in November, or 9.01 million bpd, the second highest on record, according to data from the General Administration of Customs.

Meanwhile, Bank of America Merrill Lynch projected the strong global demand and tight supplies to drive up Brent crude oil rise to $70 per barrel by mid-year.