Oil hits slide

Oil prices fell more than 3 percent on Tuesday, with U.S. crude extending losses for a fifth straight day, as the dollar rallied amid evidence that the United States and top oil exporter Saudi Arabia were pumping more than the world needed.

North Sea Brent and U.S. crude settled down more than $2 a barrel each as the dollar hit two-week highs against a basket of currencies, making crude and other dollar-denominated commodities less affordable for holders of currencies such as the euro.

The sell-off in oil came ahead of Tuesday's end-of-business expiry in U.S. crude's front-month contract, which often results in unusually heavier market activity. Volume in U.S. crude's July contract, the new front-month from Wednesday, was markedly higher than the expiring June contract, Reuters data showed.

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