* Uncertain EU policy continues to rattle investors
* Euro bounces, European shares 8 month low
* China posts record refinery runs, crude import rates
(Updates prices)
By Ikuko Kurahone
LONDON, May 21 (Reuters) - Oil prices fell below $70 a
barrel on Friday, haunted by concerns that Europe's debt crisis
could hurt global economic growth and slow energy demand.
U.S. crude for July delivery <CLc1> was trading $1.06 lower
at $69.74 a barrel by 1348 GMT. On Thursday, the expired June
contract briefly touched a nine-month low of $64.24 in the
largest intraday price range of around $7 since the end of 2008.
U.S crude has fallen about 20 percent from $87 hit on May 3,
battered by a loss of confidence in global markets due to the
crisis in the euro zone triggered by Greece's debt problems.
ICE Brent crude futures <LCOc1> fell 65 cents to $71.19 a
barrel.
"The oil market is still in a state of confusion between
actual impact on demand from the euro zone crisis and the
bearish sentiment across currency and equities market and so
on," said Andy Sommer, an energy market analyst with EGL in
Switzerland.
Greece's sovereign debt crisis and Germany's unilateral ban
on some speculative trades pushed the euro to the four-year low
earlier this week.
On Friday, the euro held broad gains, after investors wary
of holding too many short positions following its heavy
sell-off, scrambled to take off those trades as fears of
currency intervention rose. []
German lawmakers backed a $1 trillion safety net to
stabilise the euro but world stocks slid further on Friday on
fears Europe's debt crisis and tougher financial regulation will
choke economic recovery. []
The FTSEurofirst 300 <> index of top European shares
hit the lowest in eight months despite the German approval.
[] []
German business sentiment dipped in May and private sector
growth slowed as the euro zone debt crisis darkened the outlook
for Europe's largest economy. []
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For a factbox on oil's choppiest sessions since 1983, see:
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For a technical chart, see:
http://graphics.thomsonreuters.com/gfx/WT_20102105085609.jpg
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U.S., CHINESE DEMAND
U.S. crude futures came under more pressure this week due to
record high levels of inventories at Cushing, Oklahoma, the
delivery hub for the underlying oil for the futures. []
[]
On the other hand, EGL's Sommer pointed out some signs of
recovery in the broader oil demand. Statistics have shown oil
demand in the United States and China, the world's top two oil
consuming markets, has been relatively strong.
On Wednesday, U.S. government data showed total product
demand over the past four weeks was 19.21 million bpd, up 4.8
percent from a year ago. []
China's official data showed country posted record rates
both in refinery output and crude imports in April, following
seven months of double-digit growth in apparent oil demand.
[]
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For a factbox of bullish and bearish factors behind
the oil price, click on []
For Reuters columnist John Kemp's view on the U.S. oil market,
click on: [] []
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(Reporting by Florence Tan in Singapore and Ikuko Kurahone in
London; Editing by Keiron Henderson and Sue Thomas)
