Oil drops on stronger dollar, prospect of more supply

26.02.2021 - Kulakov Vladimir
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.

Risk disclaimer "PROMETHEUS LTD – Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands MH96960 is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0155 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of PROMETHEUS LTD and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from umarkets.ai or PROMETHEUS LTD." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue

Help with deposit?