* U.S. stock markets fall
* China's implied oil demand rises in April
* OECD sees chance economic contraction will end late 2009
* OPEC likely to maintain output targets next week
(Updates prices in lead, second paragraph)
By Ikuko Kao and David Sheppard
LONDON, May 22 (Reuters) - Oil slipped below $61 on Friday
amid persisting worries over the fiscal outlook of the United
States, the world's top energy consumer, but losses were
limited by data showing a big increase in Chinese oil demand
last month.
U.S. crude futures <CLc1> fell 12 cents to $60.93 by 1500
GMT, down from the day's high of $61.98. London Brent <LCOc1>
fell 1 cent to $59.92.
"Oil looks a little overheated heading into the long
weekend," VTB Capital analyst Andrey Kryuchenkov said. "Traders
are still eyeing weakness in equities and a swinging U.S.
dollar, but there is some solid support above $60."
The Dow Jones industrial average <>, the Standard &
Poor's 500 Index <.SPX> and the Nasdaq Composite Index <>
turned negative after opening higher, dragging European shares
lower. [][]
Oil hit a six-month high of $62.26 earlier this week. Oil
has recovered from a five-year low below $33 in December,
having plunged from record highs above $147 last July.
U.S. investment bank Goldman Sachs said the hike in prices
this week was due to real oil market fundamentals, after weeks
of rallies due to hedging against a weak dollar and equity
market rallies.
The Nigerian military has launched its biggest campaign in
years in the country's oil heartland, bombarding militant
camps, which has sent fears of further supply disruptions from
the West African country through oil markets. []
In the United States, a refinery fire and outages pushed up
gasoline prices ahead of the Memorial Day holiday this weekend
which kicks off the country's summer driving season.
In China, the world's second-largest energy consumer,
apparent oil demand rose 3.9 percent in April from a year
earlier, data showed on Friday. It was the first significant
rise since October last year. []
OPEC
Oil traders were expected to shift their focus to next week
when the Organization of the Petroleum Exporting Countries will
meet to review its output policy on Thursday.
OPEC is expected to keep its official production levels
unchanged as rising prices have eased pressure on budgets, and
there are hints of economic recovery over the next year, a
Reuters poll showed on Thursday. []
The contraction in world economic output appeared to be
slowing and a recovery could begin at the end of this year, the
Organisation for Economic Development and Cooperation (OECD)
said on Friday.
OECD chief Angel Gurria said at an economic forum that
indicators ranging from U.S. house sales to Chinese exports
were beginning to pick up and the global economy was no longer
in free fall. []
(Additional reporting by Jennifer Tan in Singapore and Richard
Valdmanis in New York; editing by Jim Marshall)
