Oil tracked down most recently by 40 cents to $121.70 a barrel on reports that sales at the pump were 4 percent below sales a year ago and a U.S. Transportation Department report that said motorists logged 9.6 billion fewer miles in May compared with May 2007, The Wall Street Journal reported.

"The momentum is down now," Vincent Morales, a broker at ARB Oil Inc. told the Journal. "Funds have no choice but to liquidate some positions."

On the New York Mercantile Exchange, heating oil prices also fell, down 0.0007 cents to $3.4715 per gallon. Reformulated blendstock gasoline prices fell 0.009 cents to $2.9987 per gallon. Natural gas prices fell 0.047 cents to $9.17 per million British thermal units.

The national average retail price of unleaded gasoline edged lower, down 0.017 cents to $3.941 per gallon, the AAA Daily Fuel Gauge Report said.