Oil falls towards $65 as sombre economic mood returns

Mon Jul 6, 2009 1:29am BST
 
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* Oil falls towards $65 amid weak economic outlook

* Asian stocks to fall on economic gloom

* Nigeria militants attack Shell, amnesty hopes fade

PERTH, July 6 (Reuters) - Oil fell towards $65 a barrel on Monday, extending last week's near 4 percent drop, as weak economic data continued to cast doubt over the prospects of a global economic recovery and energy demand.

U.S. crude for August delivery CLc1 fell $1.58 to $65.15 a barrel by 0018 GMT. London Brent crude fell 74 cents to $64.87.

NYMEX floor trading was closed on Friday because of the U.S. Independence Day holiday, and although oil contracts were trading electronically, NYMEX did not issue an official closing price.

"Two major data will be remembered from the past week, the UK economy shrank by 2.4 percent, the biggest contraction since 1958, and the unemployment figure from the US, which hit 26-year high of 9.5 percent," said Stefano Vincelli, an equities and derivatives trader from Halifax Investments in Sydney.

"Overall, the supply and demand picture for crude is still a bearish number."

World stocks fell on Friday after a disappointing U.S. jobs report and a sluggish euro zone services sector survey reinforced expectations the process of recovery in the global economy would be long and slow. [.N]  Continued...

 

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