Oil prices fell on Friday on rising bond yields against the US dollar. At the same time, crude supply is expected to rise above the pandemic pre-level.
Brent crude futures for April fell $ 1.99, or 1.4 percent, to $ 65.89 a barrel, ending Friday. 1203 GMT. The May trade, which is trading higher, fell $ 1.19 to $ 64.92.
US West Texas Intermediate (WTI) crude futures fell $ 1.27, or 2 percent, to $ 62.26.
Sales in bond markets have raised the US dollar, making dollar-denominated oil more expensive for holders of other currencies.
Friday’s gains reflect on supply disruptions in the United States and optimism about the recovery in demand behind the Covid-19 vaccination programs, as well as gains after Brent and WTI gained 20% on a monthly basis.
Investors are hopeful that next week’s meeting of the Organization of Petroleum Exporting Countries (OPEC) and its allies, known as OPEC +, will return more supplies to the market.
Oil prices went up very fast. Global oil demand is still high but Brent is above the pandemic level, ”PVM analysts said.
She said that for all the discussions on tightening the basics, there is nowhere to ensure the current oil price level in the market demand year.
U.S. crude prices are also under pressure from refinery demand, following the closure of several Gulf Coast facilities during last week’s winter storm.
JPMorgan analysts said in a note this week that the refining capacity of 4 million barrels per day (BPD) is still closed, and that it may take until March 5 to resume all shutdown capacity, despite delays.