1st LD Writethru: Oil prices drop as U.S. dollar strengthens

Oil prices continued its retreat Tuesday as a stronger U.S. dollar weighed on the crude market.

The U.S. dollar climbed against other major currencies on Tuesday as economic data from the country came out positive. The dollar index, which measures the greenback against six other currencies, was up 1.12 percent at 95.274 in late trading. A stronger greenback makes the dollar-priced crude more expensive and less attractive for buyers holding other currencies.

Meanwhile, the ample supply also dragged down the crude market. Global supply growth is likely to outpace demand by about 1.3 million barrels a day of this year, said the Energy Information Administration (EIA).

Total U.S. crude oil production averaged an estimated 9.3 million barrels per day in March. EIA projected total U.S. crude oil production averages 9.2 million barrels per day in both 2015 and 2016.

Saudi Arabia, the top crude producer, said it exported 7.898 million barrels of crude a day in March, its highest level since November 2015.

Light, sweet crude for June delivery lost 2.17 U.S. dollars to settle at 57.26 U.S. dollars a barrel on the New York Mercantile Exchange. In London, Brent North Sea crude for July delivery, the global benchmark, moved down 2.25 dollars to close at 64.02 dollars a barrel. Endite