Crude dropped after the International Energy Agency said this year’s rally is under threat as OPEC’s biggest members pump at a record pace.
Saudi Arabia, Iraq and the United Arab Emirates each produced record amounts of oil in May, the IEA said. Futures also retreated as the dollar advanced against its major peers for the first time in four days, making raw materials priced in the U.S. currency less attractive as a store of value.
Oil’s recovery from a six-year low has slowed amid speculation that global production will expand as prices rebound, prolonging a surplus. The Organization of Petroleum Exporting Countries last week decided to maintain its quota as it sought to defend market share against higher-cost producers.
West Texas Intermediate oil for July delivery fell 85 cents, or 1.4 percent, to $60.58 a barrel at 10:44 a.m. on the New York Mercantile Exchange. The contract climbed to $61.43 on Wednesday, the highest settlement since Dec. 9. Prices are up 14 percent this year.