Oil drops on stronger dollar, but Texas supply strained
Oil prices dropped in early trade on Wednesday, falling back after a two-day rally driven by a cold front capping oil and gas field output in Texas.
U.S. West Texas Intermediate crude futures lost 0.6%, or 33 cents, at $59.72 per barrel, falling from a 13-month high of $60.95 hit on Tuesday.
Brent crude futures were down 0.6%, or 40 cents, at $62.95 per barrel after three straight days of gains.
Brent also fell after Norway prevented a strike and closure of major offshore fields as oil workers signed a wage bargain with operators.
A strong dollar makes crude pricier for buyers purchasing it in other currencies. Still, U.S. oil supply was strained by a deep freeze that curbed 500,000 to 1.2 million bpd of crude output in Texas.
U.S. oil inventory data from the Energy Information Administration and the American Petroleum Institute will be released within the week. Analysts expect crude stocks to fall 2.2 million barrels in the week ended Feb. 12.