Oil prices fell on Friday as bond price rout led to gains in the U.S. dollar while crude supply is expected to rise in response to prices climbing above prepandemic levels.

Brent crude futures for April, which expire on Friday, fell 99 cents, or 1.4, to 65.89 a barrel by 1203 GMT. The more actively traded May contract slipped by 1.19 to 64.92.

U.S. West Texas Intermediate WTI crude futures dropped 1.27, or 2, to 62.26.

A selloff in bond markets lifted the U.S. dollar, making dollarpriced oil more expensive for holders of other currencies.

Fridays gains also reflect profittaking after both Brent and WTI headed towards monthly gains of about 20 on supply disruptions in the United States and optimism over demand recovery on the back of COVID19 vaccination programmes.

Investors are betting that next weeks meeting of the Organization of the Petroleum Exporting Countries OPEC and allies, a group known as OPEC, will result in more supply returning to the market.

Oil prices have gone too far and too fast. Brent is above prepandemic levels even though global oil demand is still playing catchup, PVM analysts said.

For all the talk of tightening fundamentals, the demand side of the market is nowhere near warranting current oil price leves, they added.

U.S. crude prices also face pressure from the loss of refinery demand after several Gulf Coast facilities were shuttered during the winter storm last week.

Refining capacity of about 4 million barrels per day bpd is still…