UPDATE 12-Oil falls to near two-month low on economy worries

* Falls to lowest since May 18

* Analysts see oil prices falling further, target $55

* Rally on Wall Street tempers losses (Updates with Brent settlement in second paragraph)

By Richard Valdmanis

NEW YORK, July 13 (Reuters) - Oil prices slipped on Monday, briefly touching their lowest level in almost two months on concerns over the state of the global economy.

U.S. crude oil for August delivery CLc1 fell 20 cents to settle at $59.69 a barrel, after earlier falling to a low of $58.32, the lowest since May 18. London Brent LCOc1 rose 17 cents to $60.69 a barrel.

The losses add to last week's 11 percent slide -- the market's biggest weekly decline since late January -- triggered by concerns another economic dip could delay a rebound in demand for fuel.

"Prices are falling today and will probably fall tomorrow and for the rest of the week because in the near term the economic fundamentals continue to be very weak," said Mike Wittner, global head of oil research at Societe Generale.

Wittner saw a target for U.S. light crude at around $55 per barrel and said prices could press on down toward $50.