US crude oil futures ended lower on Friday on rising oil demand and economic worries, posting the biggest weekly percentage loss since January. Prices initially fell below $60 in early trading, pressured by a weak demand forecast from the International Energy Agency, weakening equities markets and a stronger dollar. Global oil demand will rebound 1.7 percent next year, but the demand outlook for this year was “effectively unchanged,” - down 2.9 percent, or 2.5 million bpd from last year, the Paris-based International Energy Agency, adviser to 28 industrialized nations, said in its monthly forecast. “The gloomy mood in the oil markets continues and it looks like participants are in the ‘hunker-down' mode here. The economic data out today do not suggest that the economy is faring any better. And consumer confidence is poor,” said Phil Flynn, analyst at PFGBest Research in Chicago. “The oil markets are moving with the stock markets and we are seeing some short-covering before the weekend, so the losses have been pared as the stock market is also off its lows,” he added. On the New York Mercantile Exchange, crude for August delivery settled 52 cents lower, or 0.86 percent, at $59.89 a barrel, after trading from $58.72 to $60.89. It was the lowest settlement since May 19's $59.65. The day's low was the lowest since prices hit an intraday low of $58.55, also on May 19. In London, August Brent crude settled down 58 cents, or 0.95 percent, at $60.52 a barrel, trading from $59.53 to $61.44. The week's closing price reflected a loss of $6.84, or 10.25 percent, from the $66.73 settlement a week ago and marked the biggest percentage drop for a week since prices ended down 10.31 percent in the week to Jan. 30. The June 30 peak of $73.38 was the highest intraday front-month crude oil price since crude hit $75.69 on Oct. 21. In London, August Brent crude settled down 58 cents, or 0.95 percent, at $60.52 a barrel, trading from $59.53 to $61.44. In late trading Wall Street was down, with the Dow industrials and the S&P indexes set for their fourth weekly drop, after oil major Chevron warned about second-quarter results and a drop in the consumer confidence level. David Fyfe, head of the IEA's oil industry and market division, said the extent of recovery in world oil demand would rest on the performance of the global economy and prices.
