Oil traded lower on Thursday as investors cashed in profits after an overnight rally that pushed prices above 62 dollars, traders said.
New York's main futures contract, light sweet crude for delivery in July, fell 1.32 dollars to 60.72 dollars a barrel.
Brent North Sea crude for July delivery shed 1.29 dollars to 59.30 dollars.
Prices for the New York contract rocketed to six-month highs of 62.26 dollars on Wednesday after data showed a fall in key US oil inventories.
US crude reserves tumbled 2.1 million barrels in the week ending May 15, far more than market expectations for a 700,000 barrel drop.
This indicated that energy demand was holding firm despite a deep recession in the United States, the world's biggest economy and the largest oil consumer.
"There was plenty of bullish (price supportive) data in the inventory report to cause oil to get to such a high level," said Victor Shum, senior principal at energy consultancy Purvin and Gertz.
Shum said the upcoming summer vacation period when Americans traditionally hit the roads in vast numbers, pushing up demand for gasoline (petrol), would further strengthen oil prices.
"We can expect ongoing price strength for the remainder of the week and might see even stronger prices ... on Friday," he said.
At the start of the week, prices touched six-month highs thanks to buoyant stock markets that signalled increased optimism for economic recovery, traders said.
Unrest in oil producer Nigeria also added to upward price pressure.
The recent price jump is "impressive given the severity of the downturn in global industrial production," said Ed Yardeni, chief investment strategist at Yardeni Research.
"It suggests that oil traders are expecting that once the global economy recovers, supplies will tighten up quickly relative to demand. In other words, it will be back to the future.
"If so, then the price could rebound back toward 100 dollars a barrel in this scenario," Yardeni said.
