2021.02.2609:01:00UTC+00Oil Prices Fall On Dollar Strength

Oil prices fell on Friday as the dollar rose against major rivals amid a rout in global bond markets.

Brent crude futures for May settlement dipped 0.8 percent to $65.60 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were down 0.7 percent at $63.12.

The dollar edged higher on safe-haven demand on the back of a sustained rise in U.S. yields and a slew of stronger-than-expected U.S. economic data released overnight.

Meanwhile, speculation is rife that U.S. President Joe Biden's fiscal spending package will not be as large as the proposed $1.9 trillion.

A stronger greenback makes U.S.-dollar priced oil more expensive for those buying crude in other currencies.

The fall in oil prices comes at a time when more supply is likely to return to the market.

With oil prices recovering to pre-pandemic levels, there is an argument that the OPEC+ meeting scheduled to take place next week will result in more supply returning to the market.