Oil prices dipped lower on Friday, April 27, on strong dollar, but Brent was still headed for its third week of gains amid supply concerns should the United States reimpose sanctions on Iran.
Global benchmark Brent crude futures LCOc1 were down 27 cents at $74.47 a barrel at 0833 GMT. This month, Brent hit highs above $75, a level last seen in late 2014.
U.S. West Texas Intermediate (WTI) crude CLc1 fell 31 cents to $67.88 a barrel. This month, WTI has gained around 4.5 percent.
Brent has added around 6 percent this month on expectations of renewed sanctions, which would likely dampen Iranian oil exports. The gains came despite a higher dollar .DXY, which is at its strongest since Jan. 12 against a basket of currencies.
Increases in the U.S. currency make dollar-priced oil more expensive for holders of other currencies.
Concerns about market tightness have also been fueled by the deteriorating political and economic situation in Venezuela that has led to a 40 percent decline in crude output in the past two years. PRODN-VE
Price increases have been capped by rising U.S. production as shale drillers ramp up activity, underpinning a widening discount between Brent and WTI, which hit its largest since Dec. 28, Reuters reports.
Surging U.S. production, which rose to 10.59 million barrels per day last week, has encouraged record-high U.S. exports.