On the New York Mercantile Exchange, light, sweet crude oil futures for September delivery fell 87 cents to end at 63.07 dollars a barrel. Prices touched as high as 64.27 dollars per barrel during yesterday's intraday trading. Meanwhile, on London's International Petroleum Exchange, the September Brent dropped 72 cents to settle at 61.98 dollars a barrel.
Tuesday's profit-taking came as the Organization Petroleum Exporting Countries (OPEC) said global oil supply was exceeding demand. A US government report also showed distillate stockpiles on the East Coast this winter would be higher than last year despite surging demand.
However, traders said the market remained on a bullish footing due to security concerns in Saudi Arabia, tensions in Iran, and refinery troubles in the US that could disrupt fuel inventories.
Analysts expected that oil prices would be above 60 dollars a barrel for quite a long time as consumption continued to increase.