North American markets appear headed for a flat start Friday morning as oil prices hover above US$67 a barrel.

Crude-oil prices fell 19¢ to US$67.30 a barrel in early trading Friday. Oil futures hit another nominal settlement record on Thursday — settling at US$67.49 a barrel — amid reports of a larger-than-forecast decline in gasoline inventories and concerns that Hurricane Katrina could swerve into the Gulf of Mexico and slow supplies.

In this morning’s economic news, Statistics Canada said that higher gasoline prices helped drive up the annual inflation rate to 2% in July. That’s an increase over the 1.7% rate reported in June.

However, the core inflation rate, which excludesthe eight volatile components identified by the Bank of Canada rose by 1.4% between July 2004 and July 2005, a slowdown compared to the 1.5% rise recorded in June.

Later today, the University of Michigan is due to release its final reading for August consumer sentiment at. Economists look for the index to slip to 92.8 for August from the final July reading of 96.5, showing a minimal improvement from the preliminary August reading of 92.7.

As well, Federal Reserve Chairman Alan Greenspan speaks at the Kansas City Fed’s Economic Symposium in Jackson Hole, Wyo. Investors will be paying close attention to see if Greenspan gives any hints on the timing and size of future interest rate hikes.

The Canadian dollar opened at Friday at US83.69¢, down 0.14 of a cent. On Thursday, the loonie fell 0.11 of a cent.

Overnight in Asia, the Japanese Nikkei 225 index closed at 12,439.48 points, up 34.32 points, or 0.28%.

In Hong Kong, the blue-chip Hang Seng Index rose 93.79 points, or 0.63%, to 14,982.89 after trading between 14,863.04 and 14,991.64 during the session.

On Thursday, the Toronto stocks climbed as earnings reports from TD Bank and National Bank helped boost the financial sector.

The S&P/TSX composite index rose 29.21 points higher to 10,538.93 as the financial group advanced almost 0.8%.

Shares in TD gained 41¢ to $55.47 even as the bank announced its third-quarter profit dropped to $411 million, from $565 million a year earlier, on Enron-related costs. The bank raised its dividend by 5%.

Shares in National Bank climbed $1.17 to $57.17 after its third-quarter profit shot up 24% to $207 million.

Royal Bank stock also rose 61¢ to $76.86. Canada’s biggest bank reports its third quarter earnings on Friday.

The junior S&P/TSX Venture composite index moved 1.45 points lower to 1,916.93.

In New York, markets finished slightly higher as investors worried about the economic impact of soaring oil prices.

The Dow industrial average gained 15.76 points to 10,450.63. The Nasdaq composite index advanced 5.46 points at 2,134.37, while the S&P 500 was up 2.78 points higher at 1,212.37.