Oil drops 1% on US dollar strength, expectations for supply gains

Oil prices fell 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 96 cents, or 1.5%, to $62.57 a barrel at 0804 GMT, giving up all of Thursday’s gains.

Brent crude futures for April, which expire on Friday, fell 86 cents, or 1.3%, to $66.02 a barrel, following a 16 cent loss on Thursday.