NEW YORK (MarketWatch) -- Crude oil futures fell Friday after a stronger-than-expected retail-sales report boosted the dollar and weighed on commodities that are priced in the U.S. currency. Earlier in the session, crude prices had risen after the International Energy Agency raised its forecast for next year's global oil demand and China said its industrial production accelerated in November to the fastest rate this year. Crude oil for January delivery was last down 35 cents, or 0.5%, at $70.19 a barrel on the New York Mercantile Exchange. It is set to end the week down about 7%, the biggest weekly loss in 11 weeks. The United States Oil Fund (USO 35.38, -0.35, -0.98%) slid 0.2%. "Retail sales and the stronger dollar are the main reasons pushing down oil prices," said Phil Flynn, vice president at futures trading and research firm PFG BEST Research. "Oil supply is still ample." In currencies trading, the dollar reversed earlier losses, rising strongly against most of its major rivals. The dollar index (DXY 76.47, +0.42, +0.56%) was last up 0.5% at 76.411. The dollar and commodities prices have had a strong inverse relationship in recent trading. U.S. retail sales rose a better-than-expected 1.3% in November, the third increase in the past four months, the Commerce Department estimated Friday. The sales gains were widespread across most kinds of retail outlets, including autos, gasoline, department stores and hardware stores.

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