Oil prices decline on a stronger U.S. dollar

Oil prices fell on a stronger U.S. dollar. The greenback rose against other currencies on better-than-expected U.S. preliminary manufacturing purchasing managers' index. The U.S. preliminary manufacturing purchasing managers' index (PMI) climbed to 54 in October from 53.1 in September, beating expectations for a decline to 52.8.

"The positive start to the fourth quarter suggests the economy may be picking up speed again after slowing in the third quarter, for which the PMI surveys pointed to annualised GDP growth of 2.2%," Markit Chief Economist Chris Williamson.

The greenback also rose on China's interest rate decision. The People's Bank of China (PBoC) announced on Friday that it lowered the one-year benchmark bank lending rate by 25 basis points to 4.35%. It was the sixth interest rate cut since last November.

The central bank hopes with this decision to support the country's economy.

The interest rate cut would be effective from October 24.

Market participants are awaiting the release of the number of active U.S. rigs later in the day. The oil driller Baker Hughes reported last Friday that the number of active U.S. rigs declined by 10 rigs to 595 last week. It was the seventh consecutive decrease and the lowest level since the week ending July 23, 2010.

WTI crude oil for December delivery declined to $45.31 a barrel on the New York Mercantile Exchange.

Brent crude oil for December fell to $48.07 a barrel on ICE Futures Europe.