Oil falls 2 percent on economic weakness
NEW YORK (Reuters) - Oil fell over 1 percent on Friday after news of a euro zone recession and data showing a record decline in U.S. retail sales stirred concerns of a further drop in fuel demand.
U.S. crude settled down $1.20 at $57.04. London Brent crude for January dropped $2.00 to $54.24.
U.S. stocks fell on Friday after a record slump in retailers' sales last month heightened concerns about a protracted economic downturn.
"With a steady stream of news chronicling worsening economic performance, the downward momentum will only be slowed with great difficulty," Mike Fitzpatrick, vice president at MF Global, said in a research note.
"A sustained rise over several days, breaching $62 (a barrel) on settlement might convert some into believers. A direct threat to supply may convert more."
Oil has tumbled from record highs of over $147 in July as the global economic crisis hit demand in the large consumer nations.
Sales at U.S. retailers suffered a record decline of 2.8 percent in October as fears of a recession sapped spending, according to figures from the Commerce Department. [ID:nN14423234]
Data on Friday showed the euro zone economy contracted 0.2 percent in the third quarter, officially confirming the 15-nation bloc is suffering its first recession since the common European currency was adopted.
OPEC
The continuing fall in the oil price has prompted OPEC to call for another emergency meeting at the end of this month.
The EIA's weekly inventory report on Thursday showed total product demand down 6.6 percent over the past four weeks compared with a year ago, while the IEA downgraded its global oil demand growth forecasts in a report released on Thursday.
On Friday, OPEC members Libya and Iran both voiced concern about the low oil price.
One OPEC delegate told Reuters on Friday that the cartel may announce a further 1.5-million-barrel-per-day cut, on top of another cut of 1.5 million barrels agreed last month at an emergency meeting.
(Additional reporting by Gene Ramos and Robert Gibbons in New York and Christopher Johnson in London; Editing by Christian Wiessner)
