Oil falls towards $65 as sombre economic mood returns

* Oil falls towards $65 amid weak economic outlook

* Asian stocks to fall on economic gloom

* Nigeria militants attack Shell, amnesty hopes fade

PERTH, July 6 (Reuters) - Oil fell towards $65 a barrel on Monday, extending last week's near 4 percent drop, as weak economic data continued to cast doubt over the prospects of a global economic recovery and energy demand.

U.S. crude for August delivery CLc1 fell $1.58 to $65.15 a barrel by 0018 GMT. London Brent crude fell 74 cents to $64.87.

NYMEX floor trading was closed on Friday because of the U.S. Independence Day holiday, and although oil contracts were trading electronically, NYMEX did not issue an official closing price.

"Two major data will be remembered from the past week, the UK economy shrank by 2.4 percent, the biggest contraction since 1958, and the unemployment figure from the US, which hit 26-year high of 9.5 percent," said Stefano Vincelli, an equities and derivatives trader from Halifax Investments in Sydney.

"Overall, the supply and demand picture for crude is still a bearish number."

World stocks fell on Friday after a disappointing U.S. jobs report and a sluggish euro zone services sector survey reinforced expectations the process of recovery in the global economy would be long and slow. [.N]

In the latest sign the economy of the world's top consumer was still struggling, data on Thursday showed U.S. employers cut 467,000 jobs in June and the jobless rate rose to a 26-year high. Euro zone unemployment climbed to a 10-year high. [ID:nSP531790]

In Britain, the country's dominant services sector expanded for a second month in June but the pace of recovery slowed as new business contracted and firms stepped up the pace of job cuts, a monthly survey showed on Friday. [ID:nL3535155]

As bearish sentiments return, analysts said movements in the U.S dollar, which nudged up slightly on Monday, could play a greater role in influencing oil prices this week.

Oil's decline came despite fresh attacks on oil installations in Nigeria, Africa's top oil producer.

Nigerian militants said on Sunday they had launched their third attack on Royal Dutch Shell's (RDSa.L) since President Umaru Yar'Adua made an amnesty offer, and threatened to intensify their campaign of sabotage. [ID:nL5621954] (Reporting by Fayen Wong; Editing by Jerry Norton)