Oil prices fell Friday after the US Federal Reserve signaled a more cautious approach to reducing interest rates next year, coupled with the strength of the US dollar.

The international oil benchmark Brent crude lost 0.15% to $72.10 per barrel at 11.09 a.m. local time (0809GMT), down from the previous session's close of $72.21.

US benchmark West Texas Intermediate also fell 0.26% to $68.87 per barrel, compared to $69.05 at the close of the prior session.

At this week's meeting, the Fed indicated that it would take a more gradual, cautious approach to interest rate cuts in the coming period.

Future rate adjustments will depend on incoming data and evolving economic conditions, the bank said in a statement on Wednesday.

The expectation that the Fed may slow the pace of policy rate cuts has boosted demand for the dollar.

Predictions that the tax cuts, immigration restrictions, and import tariffs promised by President-elect Donald Trump, set to take office on Jan. 20, will drive inflation in the US is also fueling the rise of the dollar.

The US dollar index reached its highest level in two years at 108.125 on Friday.

The strong dollar is expected to reduce demand by making oil more expensive for foreign currency users.

Concerns that demand in China, the world's largest oil importer, will decline continue to put pressure on prices.

Fears that that the details of a planned incentives package in China will fall short of revitalizing the economy and expectations of gradually weakening demand in the world's second-largest oil consumer are also contributing to the decline in prices.