Oil falls towards $66

But latest economic data worldwide are suggesting that a global recovery will be choppy this year, if it occurs at all. Economists have warned that surging unemployment would be one of the key threats to a sustainable recovery.

JP Morgan said in a report on Friday that it expects oil prices to correct from the recent rally to about $60 a barrel or lower, amid ongoing demand weakness.

"An economic recovery will still be the primary factor in determining oil demand growth. But we are also acutely aware that prices have been rising to ration away the prospect of supply tightness at the end of the year," JP Morgan oil analyst Lawrence Eagles said in the research note.

NYMEX floor trading will be closed Friday for the U.S. Independence Day holiday. Electronic trading will not be affected.

(Reporting by Fayen Wong; Editing by Michael Urquhart)