Ammon News - Oil prices fell on Thursday after gaining more than $3 in the prior session, with a strong dollar capping oil demand and concerns over the faltering global economic outlook clouding market sentiment.

Brent crude futures fell 91 cents, or 1 per cent, to $88.41 per barrel by 0629 GMT, while US crude futures dropped by 80 cents, or 1 per cent, to $81.33.

Both benchmarks had rebounded in the prior two sessions, after reaching nine-month lows this week, after a temporary dive in the dollar index and a larger-than-expected drawdown of US fuel inventory raised hopes of a consumer demand recovery.