·Crude oil dropped to the 111 U.S. dollars level for the first time since early May.

·The dollar rose to the strongest level in almost six months against the euro.

·The crude futures have lost more than 24% since the all-time peak.

    NEW YORK, Aug. 15 (Xinhua) -- Crude oil dropped to the 111 U.S. dollars level for the first time since early May on Friday as the dollar gained strongly against the euro and other major currencies.

    Light, sweet crude for September delivery fell 1.24 dollars to settle at 113.77 dollars a barrel on the New York Mercantile Exchange. In the morning session, price slumped to as low as 111.34 dollars a barrel, trading down 3.67 dollars.

    The dollar rose to the strongest level in almost six months against the euro and a seven-month high against the yen. Meanwhile, the sterling pound fell versus the dollar on speculation that the Bank of England will have to cut interest rates because of the slowing economy.

    A strengthening dollar usually reduces the appeal of crude and other commodities as hedges against inflation, and makes the dollar-denominated commodities more expensive to overseas buyers.

    OPEC predicted in its monthly report Friday that the global demand for oil this year will fall by 30,000 barrels a day and the world demand growth next year will be "the lowest since 2002."

    The crude futures have lost more than 24 percent since the all-time peak of 147.27 dollars a barrel reached on July 11.

    In London, Brent crude for October delivery fell 1.13 dollars to settle at 112.55 dollars a barrel on the ICE Futures Exchange.

Dollar rises against most major currencies

    NEW YORK, Aug. 15 (Xinhua) -- The dollar rose against most major currencies on Friday as oil prices fell and some U.S. economic data improved.

    The Federal Reserve reported on Friday that U.S. industrial production rose by 0.2 percent in July, slightly better then expectations. Activity in the New York manufacturing sector rose unexpectedly to a positive 2.8 in August from a negative 4.9 in July. Applications for jobless benefits dropped by 10,000 last week, according to the Labor Department. Full story

Wall Street boosted by oil decline

    NEW YORK, Aug. 15 (Xinhua) -- Wall Street extended early gains Friday, as oil prices tumbled below 112 U.S. dollars a barrel and the two largest bond insurers rebounded.

    Light, sweet crude fell 3.36 dollars to 111.65 dollars a barrel on the New York Mercantile Exchange, as the market believes that economies around the world are slowing down and the dollar continued to rise against other major currencies. The retreat of oil prices provided relief to stocks, as investors have been worrying that high energy prices weigh on consumer spending.  Full story