Oil prices dropped on Friday as the dollar steadied and in reaction to supply and demand concerns, traders said.
Brent crude for delivery in July dropped 11 cents to stand at $66.59 a barrel in London midday deals.
US benchmark West Texas Intermediate for June delivery fell 25c to $59.63 compared with Thursday's close.
"Crude oil prices continue to remain very sensitive to the US dollar movements," said Myrto Sokou, senior research analyst at Sucden brokers.
Oil prices rose earlier in the week as a weaker US unit made dollar-denominated crude cheaper for holders of other currencies.
But the dollar steadied Friday after falling to three-month lows against the euro on positive eurozone growth data this week, coupled with poorly-received US numbers.
Despite Friday's falls, crude futures have fought back a little in recent weeks after prices plummeted more than 60% between June and January, as the Organisation of the Petroleum Exporting Countries (OPEC) refused to cut production despite a global glut.
The move by the 12-nation cartel, which pumps about 30% of global crude, was widely taken as trying to push US shale producers, which have higher costs, out of the market.
"The upcoming OPEC meeting in three weeks could clarify the current situation in the oil market," said Sokou.
"Following recent reports and market rumours, we do not expect any drastic change in the OPEC production quotas this time as the US drilling rigs have fallen significantly in the recent weeks.
"However, it looks highly possible that OPEC is likely to expand production later this year in order to prevent any further price spikes in the oil market," she added.
US benchmark West Texas Intermediate for June delivery fell 25c to $59.63 compared with Thursday's close.
"Crude oil prices continue to remain very sensitive to the US dollar movements," said Myrto Sokou, senior research analyst at Sucden brokers.
Oil prices rose earlier in the week as a weaker US unit made dollar-denominated crude cheaper for holders of other currencies.
But the dollar steadied Friday after falling to three-month lows against the euro on positive eurozone growth data this week, coupled with poorly-received US numbers.
Despite Friday's falls, crude futures have fought back a little in recent weeks after prices plummeted more than 60% between June and January, as the Organisation of the Petroleum Exporting Countries (OPEC) refused to cut production despite a global glut.
The move by the 12-nation cartel, which pumps about 30% of global crude, was widely taken as trying to push US shale producers, which have higher costs, out of the market.
"The upcoming OPEC meeting in three weeks could clarify the current situation in the oil market," said Sokou.
"Following recent reports and market rumours, we do not expect any drastic change in the OPEC production quotas this time as the US drilling rigs have fallen significantly in the recent weeks.
"However, it looks highly possible that OPEC is likely to expand production later this year in order to prevent any further price spikes in the oil market," she added.
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