Oil fell for the eighth consecutive session yesterday, edging below $70 a barrel as a stronger dollar pressured prices, outweighing higher global demand growth forecasts and strong Chinese industrial output.

US crude for January delivery fell 64 cents to $69.90 a barrel by 12.16 EST. Over the past seven trading days, front month crude has sunk almost $7, or 10 per cent.

Brent crude futures fell 21 cents to $71.65 a barrel.

Earlier, a forecast from the International Energy Agency (IEA) showed that world oil demand will rise by almost 1.5 million barrels per day (bpd) in 2010 to 86.3 million bpd and the rate of demand growth will also accelerate.

The report came after the US Energy Information Administration revised down its own world oil demand forecast for 2010 on Tuesday.

The US dollar rallied yesterday, boosted by higher-than-expected US retail sales in November. A stronger dollar tends to pressure oil prices as it makes crude more expensive for holders of other currencies.

This quarter, some investors have been shifting money out of the sinking dollar and into tangible assets such as oil and gold, and this helped to support oil in a band between $75 and $82 a barrel in October and November.

But prices broke below this range earlier this week, leaving a more uncertain outlook for crude.

Strong industrial growth figures out of China had earlier supported prices.