On Thursday, a stronger dollar and rate rise expectations overcame decreased U.S. crude stocks, sending oil prices to their lowest level in three weeks.
At 1342 GMT, Brent crude futures fell $1.65, or 2%, to $81.47. WTI futures fell $1.61, or 2%, to $77.55.
After a 2% drop on Wednesday, both benchmarks are at their lowest since late March, just before a surprise OPEC+ production reduction announcement, but not all gains have been erased.
After Tesla and other firms reported poor earnings, equity markets fell, while the U.S. dollar index rose 0.2%, putting it on track for its highest week since late February.
Oil costs are higher for non-dollar holders when the dollar strengthens.
A Reuters poll of economists showed that the U.S. Federal Reserve is likely to raise rates by 25 basis points in May, ending an aggressive policy tightening.
In Britain, persistent double-digit inflation has raised prospects of a Bank of England rate hike.
According to the U.S. Energy Information Administration, oil stockpiles declined by 4.6 million barrels as refinery runs and exports increased, while gasoline inventories unexpectedly rose.
Trading and shipping sources expect April oil loading from Russia’s western ports to reach a 2019 high.
Pakistan’s energy minister said the country’s first order for discounted Russian crude under a new contract might cover 100,000 barrels per day.
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