That, along with relentless news coverage of rising U.S. Covid infection rates, led to West Texas Intermediate settling down $1.35, or 3.3 per barrel, at $39.92 per barrel, and Brent falling 81 cents, or 1.9 percent, to $42.94 per barrel.
Oil prices rose on Friday and were on track for monthly gains, benefiting from news that USA oil output cuts in May were the largest on record.
Brent is on track for a fourth month of gains and USA crude is heading for a third as both rise from depths hit in April, when much of the world was in lockdown.
Total crude stocks fell nearly 11 million barrels last week, the largest one-week decline since 2019, the latest data from the U.S. Energy Information Administration (EIA) shows.
Brent crude's three-month timespread has been more than $1 a barrel in contango - where near-dated contracts are cheaper than later-dated ones - for five sessions.
"A relief of 6.8 million barrels could normally help prices rise even further, but concerns over a new supply glut coming from August are capping gains", Rystad Energy head of oil markets Bjornar Tonhaugen said.
"We now only rarely hear talk of V-shaped demand recoveries and extremely tight markets, the views that allowed Brent to rally beyond Dollars 40/bbl", Standard Chartered said.
The raging COVID-19 pandemic is keeping alive concerns about falling fuel demand causing an oversupplied market as record numbers of infections are reported globally, including the USA, the world's biggest consumer of oil.
Investors shift funds away from dollar to dollar-priced commodities due to their drop in price amid weaker USD.
"Global stimulus and a weak dollar will continue to support oil prices as historically oil is seen as a hedge against inflation", said Keshav Lohiya, CEO of consultancy Oilytics.
Globally, the economic outlook has dimmed again, with increasing coronavirus infections raising the risk of renewed lockdowns and threatening any rebound, according to polls of over 500 economists globally. "Transportation accounts for two-thirds of oil demand", Dhar said.
The drawdown was likely a result of supply cuts by the Organization of the Petroleum Exporting Countries and its allies, which were agreed-upon in April, finally being realized in fewer shipments.