Oil Prices Drop, Going for Weekly Gains
West Texas Intermediate crude futures also fell 0.6 percent to $73.19 a barrel, as well as Brent crude futures fell 0.6 percent to $75.60 a barrel.
Oil prices fell during trading today, but they are still on track to achieve significant weekly gains, in light of the growth in demand for crude at a faster pace than supply.
Brent crude futures fell 0.6% to $75.60 a barrel by 05:06 GMT, after jumping 1.75% on Thursday.
Meanwhile, US West Texas Intermediate crude futures also fell 0.6 percent to $73.19 a barrel, reducing the gain it made on Thursday by 1.7%.
"Oil prices pulled back slightly amid cautious sentiment across the Asia Pacific markets as investors weighed virus concerns and weaker-than-expected U.S. GDP and jobs data," said Margaret Yang, a strategist at Singapore-based DailyFX.
The two benchmark futures are on track to climb roughly 2% this week, boosted by signs of limited crude supply and strong demand in the United States, the world's top oil consumer.
"Oil prices are riding the tailwind of a weakening US dollar as investors expect [Federal Open Markets Committee chair] Jerome Powell to reiterate his dovish stance at Wednesday's FOMC meeting," said Yang. “Lingering pandemic concerns and the emerging of the delta variant may cast a shadow over the outlook for energy demand, capping the upside," he continued.
Oil prices rose by nearly a dollar on Monday. Concerns about demand caused by the spread of the Delta variant of the Coronavirus, as well as torrential rains in China, dispelled expectations of tight supplies during the rest of the year.
Brent crude futures for September delivery fell 95 cents - or 1.3% - to $73.15 a barrel. On the other hand, US West Texas Intermediate crude reached $71.11 a barrel, down 96 cents. Earlier, the two contracts went down more than a dollar.