Oil futures slipped below $69 per barrel on Friday, marking a weekly decline of over 2% as a strong US dollar weighed on the dollar-denominated commodity. The Federal Reserve's signal of fewer rate cuts next year boosted the dollar index to 108.3, its highest level since November 2022, making oil costlier for global buyers. Investors are also eyeing the latest PCE price index report for inflation cues. Crude prices are heading for a modest yearly drop, constrained by weak demand from China, rising production in the Americas, and potential sanctions on Iran and Russia. Additionally, oil traded in its narrowest annual range since 2019, reflecting a volatile yet subdued market. MCX January oil futures slipped by more than half a percent at Rs 5890 per barrel.

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