Oil falls on fears inflation may dent fuel demand growth

MELBOURNE: Oil NSE -0.66 % prices dropped on Wednesday, after a mixed finish in the previous session, amid worries that soaring coal and natural gas prices in China, India and Europe will stoke inflation and slow global growth, reducing oil demand.

A strong U.S. dollar NSE 0.43 %, trading near a one-year high, also weighed on oil prices, as it makes oil more expensive for those holding other currencies.