Oil extends losses, falls below $50 on flu fears

* Oil falls 1 pct to below $50, flu dampens econ outlook

* Flu kills 149 in Mexico, world steps closer to pandemic

* Investors eye U.S. economic data, API inventory report

By Fayen Wong

PERTH, April 28 (Reuters) - Oil prices extended losses and fell below $50 a barrel on Tuesday, as a rising death toll from a flu outbreak that started in Mexico fanned fears of a pandemic potentially hurting the world economy and air travel.

Swine flu, a new virus that contains avian and human components, has killed up to 149 people in Mexico and world health experts moved closer on Monday to declaring it the first flu pandemic in 40 years as more people were infected in the United States and Europe. [ID:nN27484099]

U.S. oil futures CLc1 fell 41 cents to $49.73 a barrel by 0223 GMT, adding to Monday's losses of $1.41. London Brent crude LCOc1 was down 41 cents at $49.91.

"Developments of the swine flu scare are playing a big part in the markets. Sentiment will worsen if the market believes that the flu has become more widespread and will cause more disruption to international trade and travel," said Toby Hassall, chief analyst at Commodities Warrants Australia.

"Investors are probably also taking a cautious stance ahead of the slew of economic data due later today."