US oil slips to trade near $40 a barrel

Oil slipped from a three-month high to trade near $40 a barrel in New York, paring a fifth consecutive weekly gain.

Futures climbed earlier to the highest level since early December as US oil production dropped, while central bank policies put pressure on the dollar and improved the outlook for demand growth.

“The oil market is getting ahead of what the fundamentals justify,” said Michael Lynch, president of Strategic Energy & Economic Research in Massachusetts.