Oil prices tumbled below $70 a barrel this evening on profit-taking after recent strong gains but analysts said they expected the market to rebound quickly. US crude sank $2.11 to $69.93, while Brent North Sea crude shed $1.70 to $69.22.
Oil jumped above $73 last week, hitting $73.23 in New York on Thursday - the highest level since October - amid hopes of a global economic recovery.
Analysts noted that last week's rallies had primarily occurred against the backdrop of a weakening dollar. A weaker dollar makes crude cheaper for buyers holding stronger currencies and that in turn tends to stimulate demand and push the market higher.
Last week, oil had also found support after the International Energy Agency raised projections for world oil demand by 120,000 barrels a day to 83.3 million in 2009, up from its 83.18 million forecast in May.
