Oil prices fell on Friday on fears that the rising consumer prices could pose difficulties for the U.S economy, leading to reduced demand.

U.S crude for January delivery fell 98 cents or 1.1 percent settling at $91.27 a barrel on the New York Mercantile Exchange. Brent crude for January rose 55 cents to $92.67 per a barrel on London's ICE Futures Europe Exchange.

A report from the Labor Department showed today that U.S. consumer prices last month rose the most in two years, driven by higher energy costs, reinforces the fears that inflation will weak confidence in the economy.

The consumer price index increased 0.8 percent in November. Prices excluding food and energy climbed 0.3 percent more than economists expected.