* Oil falls after advance to 6 month high
* U.S. weekly jobless claims, April leading indicators due
(Adds analyst comment, updates prices)
LONDON, May 21 (Reuters) - Oil fell more than a dollar to
below $61 a barrel on Thursday, after hitting a six-month high
in the previous session on expectations of a rebound in the
world economy.
U.S. crude <CLc1> for July delivery was down $1.36 a barrel
at $60.68 by 1105 GMT. It had settled at $62.04 a barrel, before
trading up to a six-month high of $62.26 in post-settlement
activity. London Brent <LCOc1> was down $1.26 at $59.33.
Oil has nearly doubled since December, despite weak demand
and high fuel inventories. Prices have risen by about a third in
the past four weeks.
A rally in equity markets has partly inspired oil's gains in
anticipation of a recovery in world economic growth and oil
consumption.
"While it may seem at odds with recent demand data and high
levels of global inventories, we believe the economic outlook is
improving and a second half recovery, perhaps more vigorous than
even we foresee, is on the cards," JP Morgan said in a note.
The bank also raised its 2009 and 2010 oil price forecasts,
looking for $55.63 a barrel in 2009 against a previous forecast
of $49.38. It raised its 2010 forecast by an even larger $10 to
$67.50 a barrel. []
Latest U.S. government data on oil inventories provided
evidence to support the view that the economic climate might be
improving.
Crude oil and gasoline stockpiles in the United States
tumbled sharply last week, according to the U.S. Energy
Information Administration, with crude declining 2.1 million
barrels and gasoline falling 4.3 million barrels.
[]
"We have become more confident that global activity is
nearing the turning point," Citi oil analysts said in a research
note. "Nevertheless, we still expect that the pace of global
recovery will be subdued," it said.
"The widespread global plunge in activity and credit
availability remains a drag on global trade."
Bullish investor sentiment about the global economic outlook
showed signs of moderating after the United States cut growth
forecasts for the next three years and credit rating agency
Standard & Poor's cut its outlook on the United Kingdom to
negative from stable. []
This knocked European equity markets, ending a five-day
advance. []
The Organization of Petroleum Exporting Countries, which has
agreed to cut 4.2 million barrels per day of output since
September in a bid to prop up oil prices, will meet on May 28 to
discuss output policy.
Ministers have said they saw no need to cut production
further.
Weekly U.S. jobless claims and April leading indicators are
due later on Thursday, which could give more clues on health of
the economy in the world's top energy consumer.
