Oil prices drop amid U.S. dollar strength, expectations for supply gains | Reuters

Oil prices drop amid U.S. dollar strength, expectations for supply gains | Reuters

Oil prices dropped on Friday as a collapse in bond prices led to gains in the U.S. dollar and expectations grew that with oil prices back above pre-pandemic levels, more supply is likely to return to the market.

U.S. West Texas Intermediate (WTI) crude futures dropped 72 cents, or 1.1%, to $62.81 a barrel at 0516 GMT, giving up all of Thursday’s gains.

Brent crude futures for April, which expires on Friday, fell 63 cents, or 0.9%, to $66.25 a barrel, following a 16 cent loss on Thursday. The more active May contract was down 77 cents, or 1.2%, to $65.34 a barrel.

“Crude oil retreated modestly from recent highs amid a ‘risk off’ sentiment as Asia-Pacific equities pulled back broadly following a sour lead from Wall Street,” said Margaret Yang, a strategist at Singapore-based DailyFX.