Oil prices fell this week, putting them on track for a second weekly decline, as a strong dollar and mixed economic signals weighed on investor sentiment.

The U.S. dollar index climbed for the second consecutive session after stronger-than-expected data on the U.S. labour market and manufacturing earlier in the week. A stronger greenback dampens demand for dollar-denominated oil from investors holding other currencies.

Meanwhile, a lack of concrete stimulus measures from top oil importer China has weighed on commodities, ANZ analysts said in a note.

China's economy grew at a slower-than-expected 4.7% pace in the second quarter, official data showed, sparking concerns about the country's oil demand.

"Concerns over supply in the short term kept the losses minimal," ANZ said, referring to worsening wildfires threatening production in Canadian oil sands.

Elsewhere on the economic front, Japan's core inflation perked up in June, leaving the door open for an interest rate hike in the major oil market.

Oil prices found some support in the prior two sessions after the U.S. government reported a bigger-than-expected weekly decline in oil stockpiles.

However, analysts at consultancy firm FGE said broader inventory trends look more bearish than expected this month. They noted that crude stocks have drawn at a slower than usual pace for this time of the year and global fuel stocks rose last week.

Meanwhile the OPEC+ producer group is unlikely to recommend changing the group's output policy, including a plan to start unwinding one layer of oil output cuts from October, three sources told Reuters on Thursday.

Following lasts weeks welcome fall in fuel costs, fuel card users can expect a further drop in the region of 1.5 pence per litre for next week.