Indian rupee seen lower on oil, outflow concerns

MUMBAI, May 12 (Reuters) - The Indian rupee may ease on Monday as record high oil prices reinforce concerns about a widening trade deficit and a weakening stock market raises worries that foreigners may withdraw some capital.

* The partially convertible rupee <INR=IN> ended at 41.60/61 per dollar on Friday, 0.4 percent stronger than its previous close of 41.76/77. It lost 2.3 percent on the week.

* Oil CLc1 has hit record highs above $126 a barrel. [O/R]. India imports 70 percent of its oil and refiners are among the biggest buyers of dollars in the local market.

* The trade deficit <INTRD=ECI> had widened 35.5 percent to $80.4 billion in the fiscal year ended March, largely due to soaring oil prices.

* The Indian stock market fell 4.9 percent last week. So far in 2008, foreigners have been net sellers of $2.9 billion of stocks. (Reporting by Saikat Chatterjee; Editing by John Mair)