Oil slumps 5%, US gasoline price drops 6% as dollar reaches record high

Oil prices tumbled about 5% to a three-week low on Friday, led by a slump in U.S. gasoline futures, as investors worried interest rate hikes from major central banks could slow the global economy and cut demand for energy.

Also pressuring prices, the U.S. dollar this week rose to its highest since December 2002 against a basket of currencies. A stronger dollar makes oil more expensive for buyers using other currencies.

Brent futures fell $5.85, or 4.9%, to $113.96 a barrel by 11:02 a.m. EDT (1502 GMT). U.S. West Texas Intermediate (WTI) crude fell $6.66, or 5.7%, to $110.93. Both were on track for their lowest closes since May 25.