Oil prices drop as Dollar strengthens

Friday's precipitous fall was prompted largely by the surge in strength of the Dollar compounding lingering concerns over the oil demand picture.

One of the key elements of the oil price spike in 2008 was the move into oil as a hedge against the weak dollar. The rebound in the greenback has obviated the need for this play and unwinds have added to downward momentum. WTI and Brent crude contracts slipped below $115, over 20% lower than the peak of early July.