* OPEC members leave output target unchanged
* U.S. oil supply at record
* Brent, U.S. crude post losses in May vs April
(Adds details, settlement prices.)
By Jeanine Prezioso
NEW YORK, May 31 Oil prices fell sharply on both
sides of the Atlantic late on Friday, pulled down by declines in
major U.S. equity indices, large supplies, a weak demand
outlook, and by technical selling that developed when support
levels were pierced.
U.S. crude oil futures fell 1.75 percent, or $1.64,
to settle at $91.97 per barrel, settling below the 200-day
moving average for the first time in a month. For the months of
May, U.S. crude futures were down 1.6 percent from April.
Brent crude oil futures settled down $1.80, or 1.76
percent, at $100.39 per barrel. For the month of May Brent crude
was down 1.93 percent compared to April.
The S&P 500 was down a half a percent on late Friday
afternoon and was on track for a weekly decline, which weighed
on oil prices, brokers said.
Earlier in the session, crude oil prices dipped on news that
TransCanada Corp said its 590,000-barrel-per-day
Keystone pipeline, which delivers Alberta crude to Illinois and
benchmark U.S. supply point Cushing, Oklahoma, had restarted.
This underscored the ample supplies of oil in the market,
which will eventually sink prices if demand does not catch up,
analysts said. U.S. government data on Thursday showing crude
stocks at a record high.
The Organization of the Petroleum Exporting Countries on
Friday kept its output target unchanged at 30 million barrels
per day, as expected, given that market prices are in line with
top producer Saudi Arabia's preferred level of $100 a barrel.
Weak economic data worried traders that demand would remain
Data from China, the world's second largest oil consumer,
due out Saturday is expected to show manufacturing activity
barely expanded in May, according to a Reuters poll.
U.S. consumer spending fell in April for the first time in
almost a year, data showed. Euro zone figures released during
the session showed unemployment in the 17-country bloc reached a
new high last month.
Traders and investors are waiting to see whether the U.S.
Federal Reserve continues its monetary stimulus program, keeping
interest rates low and supporting oil prices.
Even so, "bearish oil balances" will eventually become "too
difficult to ignore" and will send prices lower, Jefferies Bache
oil analysts said. "In the meantime, some more choppy price
action with a downward bias would appear to lie ahead."
(Additional reporting by Jessica Donati in London, Robert
Gibbons in New York and Manash Goswami; editing by Richard
Pullin, Keiron Henderson, Dale Hudson and Bob Burgdorfer)