NEW YORK ? Oil prices fell for the eighth straight session in New York on Friday, under pressure from US demand concerns and a strengthening dollar.

New York's main contract, light sweet crude for delivery in January, dropped 67 cents to close at $69.87 a barrel.

In London, Brent North Sea crude for January edged up two cents to settle at $71.88 a barrel.

The New York contract has fallen all month, shedding almost 11 percent of its value in eight sessions and closing below 70 dollars for the first time since October 7.

The oil futures market, already weak at the opening despite better-than-expected economic reports in the United States, the world's biggest energy-consuming nation, settled firmly in negative territory as the dollar spiked against the euro.

The New York barrel fell to $69.46 around 1620 GMT, just as the dollar shot up to a two-year high against the euro, with the single European currency fetching less that $1.46.

"Very weak US demand, the increase in Saudi production and monetary factors" converged to bring oil "disproportionally" weaker, said Ellis Eckland, an independent analyst.

The strong US economic data released Friday on retail sales and consumer confidence weighed on oil by stirring concerns that the Federal Reserve may raise interest rates sooner than expected.

The anticipation of a rate hike spurred the dollar higher as investors sought better yields, making dollar-priced oil more expensive to buyers using other currencies.

A major key to crude oil's rebound this year has been the weakness of the dollar, which attracted investors to commodities.

The stronger dollar's pressure on the market outweighed news that China's industrial production vaulted 19.2 percent in November from a year ago.

The huge energy-hungry Chinese economy is expected to lead the global recovery from recession.

"With global oil supply ramping up, bearish technicals... and year-end profit-taking, the bulls seem content to sit this one out," BMO Capital Markets analysts said in a note to investors.