LONDON (Reuters) - Oil prices fell on Tuesday on profit-taking after jumping to a fresh seven-month high.
U.S. crude fell 5 cents to $68.53 a barrel by 1502 GMT. On Monday, it closed at $68.58 after hitting $68.68, the highest settlement and intraday prices, respectively, since early November last year on back of Wall Street rallies.
London Brent crude rose 25 cents to $68.22.
Analysts said investors were selling off contracts to lock in profits from Monday's price jump.
"There was a huge jump in prices in the past couple of days so we are seeing profit-taking now. There are some technical indices showing the market has been overbought," said Andy Sommer, an oil analyst with EGL AG in Switzerland.
Oil has moved up steeply from lows below $33 in December. Prices rose 30 percent in May in a broad-based rally in equities and commodities markets on expectations the worst might be over for the global economy.
Oil prices could fall again because fundamentals are still weak, OPEC's director of research said, adding that the recent rally was driven by funds.
Traders will shift their focus to weekly U.S. oil data for the latest indications on fundamentals, with figures from the American Petroleum Institute due later on Tuesday and the U.S. government on Wednesday.
A Reuters survey of analysts forecast weekly U.S. inventory data would show a 1.5-million-barrel decline in crude stocks for the week to May 29, while gasoline and distillate inventories were seen rising.
The 2009 Atlantic hurricane season officially started on Monday and would run through November 30. Analysts said the potential supply impact for this year would likely be softer because U.S. stockpiles were brimming.
