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NEW YORK -- Shortly after reaching an all-time high of above $90 a barrel on Friday morning, crude oil prices fell, Reuters reported. U.S. crude oil dropped $0.68 cents to $88.79 a barrel, after hitting a high of $90.07 earlier in the day, a result of buying sparked by slimmed fuel inventories going into winter and a softening U.S. dollar, which fell to a new low against the euro on Friday, according to the report.
Of the dip in price, Christopher Bellew of Bache Financial told Reuters, "It is a long overdue correction, having reached $90."
Prices for crude oil have averaged slightly more than $67 a barrel in 2007, and is approaching the inflation-adjusted high of $101.70 hit in April 1980, a year after the Iranian revolution, according to the report.
"The dollar weakened further, spurring some investment into oil as a hedge against dollar weakness," David Moore, commodity strategist from the Commonwealth Bank of Australia, told Reuters. "And there are still concerns that oil market conditions will remain tight over the northern winter."
The White House commented on the prices Friday, stating U.S. President Bush would like to see oil prices lower than their current levels, the report stated.
"There's no magic to any particular number like $90 a barrel. Obviously, we prefer oil prices lower," White House spokesman Tony Fratto told reporters.
The spike also concerned the Organization of the Petroleum Exporting Countries (OPEC), which may call an early formal meeting to discuss a further output increase, Reuters reported. A supply increase of 500,000 barrels per day will take effect on Nov. 1, the report stated.