Oil drops on stronger dollar, prospect of more supply
Oil prices dropped on Friday as a decline in bond prices resulted in gains for the dollar and hopes that with oil back to pre-pandemic levels, higher supply is likely to return to the market.
U.S. West Texas Intermediate crude futures fell 0.6%, or 36 cents, at $63.17 per barrel. It lost all gains made on Thursday.
Brent crude futures for April delivery dropped 0.3%, or 18 cents, at $66.70 per barrel following a 16-cent loss on Thursday.
The April contract expires on Friday, while the more active May contract was down 0.5%, or 32 cents, at $65.79 per barrel.
A stronger dollar makes oil more expensive for traders buying in currencies aside from the greenback.
Despite price declines on Friday, both WTI and Brent are on course for a 20% gain this month.
Investors are hoping that OPEC’s meeting next week will result in additional supply returning to the market, considering the surge in prices and expectations for demand recovery.