TOKYO (MarketWatch) -- Crude-oil futures headed lower in electronic trading Tuesday after gaining more than 12% during a six-session winning streak to touch a nearly seven-month high.
Crude for July delivery was down 29 cents at $68.29 a barrel on Globex by late Tuesday afternoon in Tokyo, after tapping a high of $68.58.
On Monday, the contract rose $2.27, or 3.4%, to close at $68.58 a barrel on the New York Mercantile Exchange, the highest settlement price for a front-month contract since Nov. 4.
For now, weakness in the U.S. dollar is a "major force" for oil, with "reduced" inventories a close second, said Charles Perry, president of energy-consulting firm Perry Management.
"Recovery of the economy worldwide is still too far ahead to drive the increases we are seeing," he said.
Anthony Sabino, a professor of law at St. John's University whose legal practice includes oil and gas law, said oil prices will likely fall from the current levels once oil stops tracking the gains in the Dow Jones Industrial Average.
"Only a major catastrophe ... could spike it," he said. "Even summer driving season in the U.S. will not significantly drive up the price."
But Perry said crude prices may climb to $70 within a week -- assuming crude inventories drop again in data set for release Wednesday by the U.S. Energy Information Administration.
