Crude oil prices were down on Friday with the increase in the value of the dollar, making US-dollar-priced oil more expensive while discouraging investors.
International benchmark Brent crude was trading at $65.28 per barrel at 0653 GMT for a 1.25% decrease after closing Thursday at $66.11 a barrel.
American benchmark West Texas Intermediate (WTI) was at $62.76 per barrel at the same time for a 1.21% drop after it ended the previous session at $63.53 a barrel.
Crude oil prices, which are indexed to the US dollar, came under pressure with the rising value of the greenback.
The US dollar index, which measures the value of the American dollar against a basket of currencies including the Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc, rose 0.26% to 90.36.
Oil prices also came under downward pressure from the lack of demand from Texas refineries after oil production fields in the US state were caught unprepared in an unprecedented cold front that lasted almost a week, bringing 65 percent of the state’s production to a halt.
Despite limited daily declines, the promising vaccination efforts, optimistic global economic data, OPEC+ production discipline and the easing of coronavirus restrictions have brought oil prices to the highest levels in the last 13 months to pre-pandemic levels. Concerns that rising prices will increase production and strengthen the surplus in the market also weighed on the prices.
Investors are also awaiting the outcome of the upcoming ministerial meeting of OPEC+ on March 4, during which the oil-producing countries will decide whether to keep the current cuts or ease them further.
By Sibel Morrow