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UPDATE 1-Oil resumes fall towards $60 as economic woes weigh

Fri Jul 10, 2009 12:26pm IST
 
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* Oil falls again after snapping six-day slide on Thursday

* Talk of U.S. and Canada refinery shutdowns support gasoline

* IEA monthly oil report due 0800 GMT (Updates prices, adds IEA report release later in the day)

By Maryelle Demongeot

SINGAPORE, July 10 (Reuters) - Oil resumed its fall towards $60 on Friday and looks set to end the week down about 8 percent, its largest weekly fall since late January, on deepening economic pessimism and fears of new rules 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. [MKTS/GLOB]

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 CLc1 fell 40 cents a barrel to $60.01 by 0637 GMT, having settled up a modest 27 cents at $60.41 on Thursday.

London Brent crude LCOc1 lost 34 cents to $60.76.   Continued...

Construction workers work at a site as the sun sets in Chandigarh in this December 2006 file photo. REUTERS/Ajay Verma
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