NYMEX-Crude slides over 2 pct on oil demand worry
* IEA: Global oil demand to bounce back in 2010
* Wall Street set to fall on earnings jitters, oil
* Euro falls against U.S. dollar
* U.S. May trade gap narrows to lowest since 1999
NEW YORK, July 9 (Reuters) - U.S. crude oil futures dropped on Friday, hitting the lowest level since mid-May, as the latest forecast from the International Energy Agency stirred more worries about oil demand.
Global oil demand will rebound 1.7 percent next year, but the demand outlook for this year was "effectively unchanged," -- down 2.9 percent, or 2.5 million bpd compared with last year, the Paris-based International Energy Agency, adviser to 28 industrialized nations, said in its latest monthly forecast. [IEA/M]
David Fyfe, head of the IEA's oil industry and market division, said the extent of recovery in world oil demand would rest on the performance of the global economy and prices.
Wall Street was poised for a lower open on Friday after Chevron warned about second-quarter earnings, raising the specter of a weaker-than-expected second-half economic recovery and anemic corporate profits. [.N]
The euro fell 1 percent against the dollar as the New York session opened. [USD/]
On Thursday, NYMEX crude futures ended higher, snapping a six-day losing streak, amid bargain hunting, a drop in jobless benefit claims and a rally in gasoline futures.
But analysts agreed that brimming product supplies and weak demand continued to weigh on the market.
PRICES
* On the New York Mercantile Exchange at 9 a.m. EDT (1300 GMT), August crude CLQ9 was down $1.46, or 2.41 percent, at $58.95 a barrel, trading from $60.89 to $58.74, the lowest since May 18's intraday low of $56.12, to $60.89.
* The June 30 peak of $73.38 was the highest intraday front-month crude oil price since crude hit $75.69 on Oct. 21.
* In London, August Brent crude LCOQ9 was down $1.28, or 2.09 percent, at $59.82 a barrel, trading from $59.58 to $61.44.
* NYMEX August RBOB RBQ9 was down 2.21 cents, or 1.33 percent, at $1.6417 a gallon, trading from $1.6362 to $1.6707.
* NYMEX August heating oil HOQ9 dropped 3.02 cents, or 1.97 percent, to $1.5042 a gallon, trading from $1.4959 to $1.5460.
* The August/August RBOB crack spread <0#RB-CL=R> was at $10.00 after ending at $9.47 on Thursday. The August/August heating oil crack spread <0#CL-HO=R> was at $4.23, after ending at $4.03 on Thursday.
* The spread between the current front month and the five-year forward crude contract CLc61 was $20.28, based on Thursday's August 2014 contract settlement at $79.23. The spread ended at $18.82 on Thursday.
MARKET NEWS
* The G8 nations have asked international bodies to study ways of intervening in oil markets to block speculation, Italian Prime Minister Silvio Berlusconi said on Friday. [ID:nLA557855]
* The U.S. trade gap narrowed unexpectedly to $26 billion in May to the lowest reading since November 1999 as exports rose despite weak global demand and imports shrank, Commerce Department data on Friday showed.[ID:nN09466282]
* U.S. import prices jumped a steeper-than-expected 3.2 percent in June, largely because of rising oil prices, government data showed.
* Flint Hills Resources said on Friday a small pump fire was extinguished Wednesday in the east plant of its 288,000 barrel-per-day refinery in Corpus Christi, Texas.
* China's latest domestic fuel prices are based on crude oil prices at $60 per barrel and the market-linked pricing policy is aimed at curbing wasteful use of fuel, state media reported on Friday. [ID:nLA519290] (Reporting by Gene Ramos; Editing by Lisa Shumaker)
