NEW YORK, USA (AP) — Oil prices fell for the fifth straight day Friday, dipping below US$79 a barrel as the dollar strengthened and forecasters saw milder winter weather ahead.

Benchmark crude for February delivery slid 57 cents to US$78.82 a barrel on the New York Mercantile Exchange.

The weather outlook for the next 10 days calls for above average temperatures across nearly all regions of the US, which should temper demand for heating oil.

Crude prices were pressured by a stronger dollar, making it more expensive for holders of foreign currencies to purchase oil, which is priced in US dollars.

Prices also fell on concerns about weak consumer demand. The Labor Department reported that inflation-adjusted wages fell 1.6 per cent last year, the sharpest drop since 1990 and well below the 2.7 per cent inflation rate for the year. That came on the heels of data released Thursday showing a drop in retail sales in December.

In other Nymex trading in February contracts, heating oil fell 2.06 cents to US$2.0623 a gallon and gasoline slid 1.52 cents to US$2.0582 a gallon. Natural gas futures gained 7.5 cents to US$5.663 per 1,000 cubic feet.

In London, Brent crude for February delivery fell 77 cents to US$77.81 a barrel on the ICE Futures exchange.