Oil prices dropped below $89 today as a stronger dollar curbed demand for commodities.

US crude increased by 8¢ to stand at $88.46, while Brent crude for February fell by 79¢ to $93.73 at 07.20 GMT, reports Reuters.

US crude reported the gain as traders unwound short positions after a fire shut down Natural Resources’ Horizon Oil Sands facility in northern Alberta, Canada.

Strength in price, trading volumes and market structure of Brent crude aided in attracting investments that typically favours US oil futures.

The oil market is also focusing on today’s US monthly payroll report.

Investors expect December US non-farm payrolls to have jumped 175,000 after November’s small gain of just 39,000.