Crude oil was little changed in Asian trade, headed for its biggest weekly decline since January on concern a prolonged global recession will sap demand for energy.
Oil has dropped 9.5 per cent this week on speculation fuel consumption in the US, the biggest energy-using nation, will remain subdued.
Petrol stockpiles increased over the Independence Day weekend, the peak of the summer driving season, a July 8 report showed. Yesterday, futures touched $US59.25 a barrel, the lowest intraday price since the start of the year.
"The number one factor is still demand - it all goes back to the economy,'' said Ken Hasegawa, a commodity derivatives sales manager at brokers Newedge in Tokyo. "Today it's possible we'll test yesterday's low. If the market goes down further from here, we could see more selling orders.''
Crude oil for August delivery fell 5 cents to $US60.36 a barrel in Singapore, poised for a fourth week of declines. Futures rose 0.5 per cent to $US60.41 yesterday, snapping six days of losses, the longest losing streak this year.
"With a poor economic outlook for the future, oil is going to be pressured to come down in price,'' said Mike Sander, an investment adviser with Sander Capital in Seattle. "Just as exuberance pushed oil higher in the second quarter, pessimism could easily push oil lower in the third quarter.''
