Oil prices fell on Friday, deepening losses for the second straight day and pulled back from a 13-month high, due to profit-taking and the US dollar's rise.
US crude fell 1.4% to $62.56, after opening at $63.44, and hit a day high at $63.55, and Brent crude fell 2.75% to $65.18, after opening at $67.03, and hit a day high at $67.68.
US crude fell less than 0.1%, after hitting a 13-month high of $63.79 a barrel, and Brent futures fell 0.3%, after hitting the highest since January 2020 at $67.68 a barrel.
The dollar index rose 0.4% today, within recovery attempts from a 7-week low of 89.68 points against a basket of major currencies.
A rising greenback weighs down on the prices of dollar-denominated commodities, making them more expensive for other currencies holders.
The US dollar is being lifted by the US 10-year Treasury bond yield jump to a year high, which raised bets that the Federal Reserve would start tightening monetary policy to face the rising inflation rate in the country.
However, oil prices are still high by more than 5% this week, to head for the third weekly gain in a month, thanks to expectations of a global supply shortage during the first quarter of this year.
Goldman Sachs Group estimated that the oil market would have a deficit during the first quarter of 2021, as the global demand for fuel would recover, in addition to OPEC-Plus supply cuts and Saudi Arabia's 1 million barrels voluntary cut in February and March.
Morgan Stanley also projected that the global oil market suffers from supply shortage of about 2.8 million barrels per day, and raised its forecast for Brent crude during the third quarter to reach $70 a barrel.