* Japanese retail sales fall 5.8 pct in February
* U.S. stock futures point lower; European stocks easier
(Updates prices)
By Christopher Johnson
LONDON, March 27 (Reuters) - Oil fell below $52 per barrel
on Friday as worse-than-expected Japanese economic data and
weaker stock markets encouraged profit-taking after several days
of gains.
U.S. crude oil <CLc1> hit its highest level so far in 2009
on Thursday at $54.66 a barrel on expectations that efforts by
the U.S. government to tackle bad debts and reflate the economy
would help bolster domestic spending and boost oil demand.
U.S. light crude for May delivery fell $2.44 to $51.90 a
barrel by 1430 GMT, having gained nearly 3 percent on Thursday.
London Brent crude <LCOc1> fell $2.01 to $51.45.
Oil prices have gained more than 35 percent since
mid-February, on the back of rallying stock markets and
tightening oil supplies as the Organization of the Petroleum
Exporting Countries (OPEC) has curbed exports.
Crude oil markets are at the top of recent trading ranges
and technical analysts say several markets are now overbought,
suggesting it may be a good time to take profit.
An excuse for profit-taking came on Friday with Japanese
retail sales data, which showed a bigger than expected fall of
of 5.8 percent in February from a year ago. []
Economists said Japan appeared to be on the brink of
deflation as exports dwindle and domestic demand falters.
On Thursday, U.S. jobs data showed the number of U.S.
workers collecting state unemployment benefit rose to a record
5.56 million earlier this month while new claims rose to over
650,000 in the week to March 21. []
MARKET TIGHTENING
Wall Street was set for a lower open on Friday as investors
assessed the strength of a recent surge that has March on track
to see the biggest monthly percentage gain since 1974. []
European shares fell with banks and energy companies. []
"Depressing economic data have put a halt to the recent
rally," said Christopher Bellew, oil broker at Bache Commodities
in London.
Fundamentally, the oil market is gradually tightening,
evidence from the shipping industry suggests.
OPEC seaborne oil exports, excluding Angola and Ecuador,
will fall 770,000 barrels per day in the four weeks to April 11
to 22.23 million bpd, deepening the previous week's
five-and-a-half- year low, U.K. consultancy Oil Movements said
on Thursday. []
OPEC is implementing output cuts totalling 4.2 million bpd
from its production levels in September to prop up prices, which
fell below $35 in December, down from July's record highs at
$147 a barrel as the global economic crisis eats into demand.
Venezuelan Oil Minister Rafael Ramirez said on Thursday OPEC
could agree a new production cut at its next meeting in May if
it is warranted by market circumstances, such as high global
crude stocks. []
Analysts continued to caution against the lack of
fundamentals behind the latest rise in prices.
"Risk appetite has returned in full force in global crude
markets in the wake of continuing refinement of economic
stimulus measures, but the continuing string of European run cut
announcements over the past two weeks has been a reminder of
continuing physical demand weakness," said J.P. Morgan in its
Oil Markets Weekly report.
(Additional reporting by Chris Baldwin in London and Maryelle
Demongeot in Singapore; Editing by James Jukwey)
