Crude oil fell from a seven-month high at the weekend after the United States dollar strengthened on a Government report that the US lost fewer jobs last month than forecast.
Oil declined as the US currency rose against the euro and yen, reducing demand for commodities as an alternative investment.
Last week prices climbed above US$70 ($111.76) for the first time since November.
"The jobs data gave everything a boost until the dollar reversed, which caused oil to back off," said Tom Bentz, a senior energy analyst at BNP Paribas Commodity Futures. "There may be a rethinking of the jobs data. It was better than expected, but it's still bad."
Crude oil for July delivery fell US37c, or 0.5 per cent, to settle at US$68.44 a barrel yesterday. Oil increased 3.2 per cent last week and is up 53 per cent this year.
Oil is tipped to fall this week on speculation that US stockpiles will rise. Of 23 analysts surveyed, 34 said futures would fall until June 12 - the most bearish response since February last year.
- BLOOMBERG
