* Oil hits five-week low as equities fall, dollar rises
* Societe Generale says oil expected to average $60 in July
* Nigerian militants say attacked Chevron, Shell oil sites
(Updates prices, adds quote paras 3-4)
By Alex Lawler
LONDON, July 6 (Reuters) - Oil fell to a five-week low
towards $64 a barrel on Monday, pressured by doubts over the
prospects of an early global economic recovery and a firmer
dollar.
The U.S. jobless rate reached a 26-year high and Euro zone
unemployment is at the highest in a decade, reports showed last
week. The dollar rose on Monday, limiting oil's appeal as an
alternative investment, while equities fell.
"It's a definite break to the downside, probably sparked by
the poor economic data and stalling stock markets," said
Christopher Bellew, a broker at Bache Commodities in London.
"It's completely broken through its support at around
$68.00-$68.50 and technically and probably fundamentally,
heading lower now," he added, referring to Brent crude.
U.S. crude <CLc1> fell $2.47 from Thursday's close to $64.26
a barrel by 0934 GMT. It traded as low as $63.85, the lowest
intraday price since May 28. Brent crude <LCOc1> fell $1.51 from
Friday's close to $64.10.
NYMEX floor trading was closed on Friday because of the U.S.
Independence Day holiday, and although oil traded electronically
the exchange did not issue an official closing price.
Adding to pressure on oil, European stocks <.EU> got off to
a weaker start on Monday following on from losses in Asia. U.S.
stock futures pointed to a lower opening on Wall Street.
Investors will focus later this week on a meeting of the G8
industrial nations. The summit was expected to highlight signs
that economies were stabilising, but emphasise that it was too
early yet to withdraw policy stimulus.
Societe Generale said the correction in oil prices, which
surged 42 percent in the last quarter, 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 of SG said in
a research note.
Attacks on oil installations in Nigeria, traditionally
Africa's top oil producer, could limit losses.
Chevron, Shell and Italian energy firm Agip <ENI.MI> have
cut oil output by around 273,000 barrels per day in the last six
weeks following the latest campaign of militant violence.
(Additonal reporting by Fayen Wong in Perth; Editing by
William Hardy)
