Oil falls below $60 on economic outlook, equities

By Christopher Johnson

LONDON (Reuters) - Oil prices slipped below $60 a barrel on Monday, heading towards a seven-week low on concerns over the state of the global economy as stock markets slid.

Oil prices dropped 11 percent last week in their biggest weekly decline since late January as investors raised the possibility of another economic dip before any recovery, which could delay a rebound in demand for fuel.

Crude oil for August delivery was down 10 cents at $59.79 by 1016 GMT, after earlier falling $1.01 to a low of $58.88. London Brent was flat at $60.52.

"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.

"We are in a well entrenched downtrend and you need something distinctly bullish to pull out of it."

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

Daniel Liu, strategist at MF Global in Singapore, said the oil price rally in June was "clearly overdone".

"We believe oil prices will see a further correction to fall to around $55, before they bounce up when confidence on the global economy returns to the market," Liu said.