Oil resumes fall towards $60

By Maryelle Demongeot

SINGAPORE (Reuters) - Oil resumed its fall towards $60 on Friday and looks set to end the week down around 8 percent, its largest weekly fall since late January, on deepening economic pessimism and fears of new regulations to curb futures speculation.

Uncertainty on earnings and economic recovery prospects kept Japanese shares hobbled near seven-week lows on Friday, and further pressured oil prices that briefly dipped below $60 on Thursday.

Crude's small gain on Thursday put an end to six consecutive sessions of lower settlements, the longest losing streak since mid-December. Losses were initially triggered by dire U.S. unemployment data the previous Thursday and kept on the boil by a steady stream of poor economic news.

U.S. light crude for August delivery fell 25 cents a barrel to $60.16 by 0322 GMT, having settled up a modest 27 cents at $60.41 on Thursday.

London Brent crude lost 24 cents to $60.86.

"Yesterday's market put a stop to the big drop in prices since last week. But there isn't any big move this morning. Everyone has lost their way. Where is the current price?," said Ryuichi Sato, analyst at Tokyo-based Mizuho Corporate Bank.

"$50 is the bottom level but $70 is difficult to break through due to the inventory stockpiles," he added.

Oil prices surged from lows below $34 hit in February to more than double that level in the second quarter on optimism that the global economy could be on the path to recovery.