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Oil Prices Dropped On Friday amidst Ongoing Pandemic Outrage

Oil prices reduced overnight gains on Friday but were poised to end the week largely steady after rebounding from a sharp drop. That is underpinned by expectations supply will remain tight as demand recovers.Brent crude futures fell 7 cents, or 0.1%, to $73.72 a barrel at 0147 GMT, after jumping 2.2% on Thursday.

For the week, Brent was headed for a 0.1% gain.  The U.S. West Texas Intermediate (WTI) crude futures fell 8 cents, or 0.1%, to $71.83 a barrel, following a 2.3% gain on Thursday. WTI was set to end the week flat.Demand growth is expected to outpace new supply, following the agreement by the Organization of the OPEC+, to add back 400,000 barrels per day each month from August through December.

Oil prices and other riskier assets plummeted in the week on concerns about the broad economic impact of surging Covid-19 cases of the delta variant in the United States, Britain, Japan, and elsewhere.Benchmark contracts dropped $6 on Monday but have regained all of those losses as investors expect overall crude demand to stay strong, driven by the continued fall in Oil stocks and rising rates of vaccinations

.ANZ Research analysts said that with the high demand, the market is starting to sense the 400kb/d increase in OPEC will not be enough to keep the market balanced. Inventories continue to fall, both in the U.S. and across the OECD. Analysts who have been raising Oil price forecasts for the rest of the year said they see rising vaccination rates limiting the impact of surging infections of the Delta variant.

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