(Clarifies that change in fourth paragraph is from Thursday's
close, adds reference to prices late on Friday)
* Oil falls below $65 on weak economic outlook
* Nigeria militants attack Shell and Chevron facilities
* Societe Generale says oil expected to average $60 in
July
(Updates prices, adds comments from Societe Generale)
PERTH, July 6 (Reuters) - Oil fell to a five-week low of
below $65 a barrel on Monday, after posting three weeks of
losses, as doubts over the prospects of an early global
economic recovery encouraged investors to take profit.
But oil's decline could be curbed by news of fresh attacks
on oil installations in Nigeria, Africa's top oil producer.
Nigerian militants said on Monday they had attacked
Chevron's <CVX.N> Okan oil manifold in the Niger Delta, a day
after saying they had launched their third attack on Royal
Dutch Shell's <RDSa.L> oil well head.
[][]
U.S. crude for August delivery fell around 50 cents by 0319
GMT from prices in late electronic trade on Friday, and was
down $1.75 to $64.98 a barrel from Thursday's close. London
Brent crude fell $0.70 to $64.91, adding to Friday's losses of
$1.04.
NYMEX floor trading was closed on Friday because of the
U.S. Independence Day holiday, and although oil contracts were
trading electronically, NYMEX did not issue an official closing
price.
"Two major pieces of data will be remembered from the past
week, the UK economy shrank by 2.4 percent, the biggest
contraction since 1958, and the unemployment figure from the
US, which hit 26-year high of 9.5 percent," said Stefano
Vincelli, an equities and derivatives trader from Halifax
Investments in Sydney.
"Overall, the supply and demand picture for crude is still
a bearish number."
Asian stocks were soggy and currencies were subdued ahead
of a much-expanded Group of Eight meeting this week as
investors doubted the staying power of a global recovery.
Japan's Nikkei <> slipped 1.6 percent while Asian shares
outside Japan <.MIAPJ0000PUS> eased 1.1 percent. []
Investors are still smarting from last week's dismal U.S.
jobs report, which showed U.S. employers cut 467,000 jobs in
June and the jobless rate hit a 26-year high.
Societe Generale said the correction in oil prices, which
surged 42 percent in the last quarter amid over-hyped markets,
was long-anticipated and predicted that oil prices would
continue falling and average around $60 a barrel in July.
"Non-fundamental price support, based on economic optimism,
risk appetite, and increasing medium to long-term inflation
expectations, has faded for now," Michael Wittner, global head
of oil research at Societe Generale, said in a research note.
As bearish sentiment returned, analysts said movements in
the U.S dollar, which nudged up slightly on Monday, could play
a greater role in influencing oil prices this week.
(Reporting by Fayen Wong; Editing by Ben Tan)
