* Spain's CajaSur takeover keeps investors negative on euro
* European stocks fall
* Coming up: U.S. April existing home sales, 1400 GMT
(Updates prices, adds quote paragraph 5)
By Alex Lawler
LONDON, May 24 (Reuters) - U.S. crude rose above $70 a
barrel on Monday, recouping some of last week's losses, but
analysts said sentiment remained fragile and prices could again
be hit by macroeconomic pessimism.
The euro fell broadly on Monday, pulling back from gains
last week, after the Spanish central bank's takeover of a
savings bank added to jitters about debt problems in some of the
weaker euro zone economies.
U.S. crude <CLc1> rose 23 cents to $70.27 a barrel by 1342
GMT. Brent crude <LCOc1> was down 20 cents at $71.48.
Oil in New York has fallen steeply from a 2010 high of
$87.15 reached in early May. It touched a low of $64.24 on May
20 -- the weakest for a nearby contract since July 2009.
"We've made a long correction already, and one should expect
to see a little bit of congestion around current levels while we
wait to see what direction the global markets take," said
Olivier Jakob, oil analyst at Petromatrix.
The euro was on the back foot after the Bank of Spain said
on Saturday it had taken control of CajaSur following the
failure of its planned merger with another regional lender.
[]
The move highlighted the weakness of the banking sectors of
some euro zone members, which are already suffering from fiscal
problems and struggling to bring down their budget deficits.
Oil markets remain well supplied with the Organization of
the Petroleum Exporting Countries pumping about 2 million
barrels per day (bpd) above agreed output targets.
"The fundamentals of oil haven't suddenly changed. There's
still plenty of oil about," said Rob Montefusco, a commodity
broker at Sucden Financial.
Crude stocks at the delivery hub for U.S. futures contracts
in Cushing, Oklahoma are at a record high.
While oil is just below the $70-$80 range many in OPEC have
said they prefer, OPEC officials have stopped short of calling
for any steps to prop up prices and the group is not scheduled
to meet until October.
Some in the oil market expect prices to recover given the
demand coming from emerging economies.
World oil demand is expected to rise by 1.62 million barrels
per day (bpd) in 2010, led by emerging economies such as China,
according to the International Energy Agency. Global consumption
declined in 2009.
"I think the weakness last week was a bit overdone when you
look at the incredibly strong demand data from China," said
Christopher Bellew, a broker at Bache Commodities. "It probably
won't stay down here too long."
(Reporting by Alex Lawler and Fayen Wong in Perth; Editing by
Amanda Cooper)
