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Oil drops on US dollar strength and OPEC+ supply expectations

NEW YORK (Feb 27): Oil prices fell on Friday as the US dollar rose while forecasts called for crude supply to rise in response to prices climbing above pre-pandemic levels. US West Texas Intermediate (WTI) crude futures settled US$2.03, or 3.2%, lower at US$61.50 per barrel. Brent crude futures for April, which expired on Friday, fell 75 cents in the session, or 1.1%, to settle at US$66.13 a barrel. The more actively traded May contract slipped by US$1.69 to US$64.42. The US dollar rose as US government bond yields held near one-year highs, making greenback-priced oil more expensive for holders of other currencies. However, Brent rose 4.8% and WTI ended up 3.8% on the week, and both were about 20% higher in the month on supply disruptions in the United States and optimism over demand recovery on the back of Covid-19 vaccination programmes.

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