Oil fell below $72 a barrel today, a day after reaching a near eight-month high.
It was pressured by a firmer dollar and views that prices have risen too far despite improving economic sentiment.
The market on Thursday settled at $72.68, the highest since October 20 after a three-day rally, making it look overvalued to some analysts. The dollar gained, reducing the investment appeal of oil and commodities.
US crude fell 74 cents to $71.94 a barrel by 4.15pm. London Brent crude fell 94 cents to $70.85.
Meanwhile, OPEC has further reduced its forecast for world oil consumption this year, but said the worst appears to be over for the oil market.
'As the world economy stabilises, the world oil demand appears to be settling down,’ OPEC said in its Monthly Oil Market Report. ‘There are no significant downward revisions to our previous oil demand forecasts.'
Two other closely watched forecasters, the US Energy Information Administration and the International Energy Agency, slightly raised their demand estimates this week, after months of downward revisions.
Stronger-than-expected Chinese economic data helped support prices.
