NYMEX-Crude ends lower on demand, economic worries

* IEA: Global oil demand to bounce back in 2010

* Wall Street falls on Chevron warning, consumer data

* Dollar, yen rise as investors turn cautious

* U.S. May trade gap narrows to lowest since 1999

NEW YORK, July 9 (Reuters) - U.S. crude oil futures ended lower on Friday on rising oil demand and economic worries, posting the biggest weekly percentage loss since January.

Prices initially fell below $60 in early trading, pressured by a weak demand forecast from the International Energy Agency, weakening equities markets and a stronger dollar.

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 from last year, the Paris-based International Energy Agency, adviser to 28 industrialized nations, said in its monthly forecast. [IEA/M]

"The gloomy mood in the oil markets continues and it looks like participants are in the 'hunker-down' mode here. The economic data out today do not suggest that the economy is faring any better. And consumer confidence is poor," said Phil Flynn, analyst at PFGBest Research in Chicago.

"The oil markets are moving with the stock markets and we are seeing some short-covering before the weekend, so the losses have been pared as the stock market is also off its lows," he added.

In late trading Wall Street was down, with the Dow industrials and the S&P indexes set for their fourth weekly drop, after oil major Chevron (CVX.N) warned about second-quarter results and a drop in the consumer confidence level. [.N]

The dollar and yen rose on news that U.S. consumer sentiment soured in July, which prompted investors to sell risky assets such as stocks and commodities and buy back the low-yielding dollars and yen used to finance those purchases. [USD/]

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.

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 still weighed on the market.

PRICES

* On the New York Mercantile Exchange, crude for August delivery CLQ9 settled 52 cents lower, or 0.86 percent, at $59.89 a barrel, after trading from $58.72 to $60.89. It was the lowest settlement since May 19's $59.65. The day's low was the lowest since prices hit an intraday low of $58.55, also on May 19.

* The week's closing price reflected a loss of $6.84, or 10.25 percent, from the $66.73 settlement a week ago and marked the biggest percentage drop for a week since prices ended down 10.31 percent in the week to Jan. 30.

* 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 settled down 58 cents, or 0.95 percent, at $60.52 a barrel, trading from $59.53 to $61.44.

* NYMEX August RBOB RBQ9 ended down 1.33 cents, or 0.8 percent, at $1.6505 a gallon, trading from $1.6282 to $1.6707.

* NYMEX August heating oil HOQ9 finished just 0.09 cent lower, or 0.06 percent, at $1.5335, trading from $1.4959 to $1.5460.

* The August/August RBOB crack spread <0#RB-CL=R> ended at $9.43, a tad lower from $9.47 on Thursday. The August/August heating oil crack spread <0#CL-HO=R> ended at $4.52, rising from $4.03 on Thursday.

* The spread between the current front month and the five-year forward crude contract CLc61 ended at $18.92, widening from Thursday's $18.82. The August 2014 contract settled at $78.81, down 42 cents, or 0.53 percent.

MARKET NEWS

* The Commodity Futures Trading Commission will move aggressively to rein in excessive speculation in the energy and metals markets by focusing largely on expanding its existing authority, and could have new regulations in place as early as late October. [ID:nN10514382]

* U.S. consumer sentiment soured in early July, slipping to its weakest since March, when confidence in the financial sector and economy were at a low ebb, the Reuters/University of Michigan Surveys of Consumers showed on Friday.[ID:nN10511831]

* The G8 nations have asked international bodies to study ways of intervening in oil markets to block speculation, Italian Prime Minister Silvio Berlusconi said.[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] (Reporting by Gene Ramos; Editing by Lisa Shumaker)