Oil dips

Reuters

New York

Oil prices dipped for a second day in a row on Friday as some investors took profit on a surge to seven-month highs while others worried about higher production with the market hovering near $50 a barrel.

A stronger dollar also weighed on demand for dollar-denominated oil from holders of other currencies.

The dollar spiked after Federal Reserve Chair Janet Yellen said a U.S. rate hike was probably appropriate in coming months.

A three-day weekend for the United States, owing to Monday's Memorial Day holiday, further discouraged investors from holding bullish bets. "People are worried crude production will come roaring back at these prices," said Phil Flynn, energy markets analyst at the Price Futures Group in Chicago.

"But I also think we are down because of higher interest rate concerns and the longer weekend," Flynn said. "You don't want to be long on a $50 position when oil could be below $48 by the time the new week opens."