Oil slips after record week

By Margaret Orgill

LONDON (Reuters) - Oil slipped on Friday as investors took profits from a record rally that pushed prices to a record $111 in the previous session.

"One dollar down is not very significant. It would need a lot more weakness to shake out the speculators," said Christopher Bellew at Bache Financial in London.

U.S. crude for April delivery fell 37 cents to $109.96 a barrel by 5:10 p.m. in volatile trade. It touched a record for the seventh time in a row the previous session.

London Brent crude for April, which expires later in the day, hit a record of $108.02 a barrel before easing back to

$106.97.

Barclays Capital said tight fundamentals, including disappointing non-OPEC production and soaring energy imports into China, continued to underpin the record high oil prices.

Fundamentals in the middle distillates market -- heating oil, diesel and jet fuel -- remain strong on the back of low stocks and extensive refinery maintenance in Europe and in key suppliers to the region.

Gas oil futures, the benchmark for European diesel, heating oil and jet fuel prices, hit a fresh record of $1000.50 a tonne on persistent diesel shortages in Europe due to low stocks and extensive refinery maintenance.