Oil Prices Fall on Fed Hints and Strait of Hormuz Rumors

Oil prices fell on Friday and for the week due to hints about the US Federal Reserve Bank's inflation-fighting policy and rumors of a possible agreement on shipping through the Strait of Hormuz.

Brent crude futures settled at $89.31 a barrel, down 39 cents or 0.43 percent, while West Texas Intermediate crude futures finished at $83.40 a barrel, down 13 cents or 0.16 percent.

The week saw Brent settle down by more than 5 percent and WTI by more than 4 percent.

Phil Flynn, senior analyst at the Price Futures Group, said oil prices descended further following comments by new Fed Chairman Kevin Warsh pointing to a possible rate hike later this year to curb inflation.