RTRS: Oil falls to around $80 on recovery concerns
LONDON (Reuters) - Oil fell for a third day to around $80 a barrel on Monday, extending its retreat from last week's one-year high, on renewed concerns about the strength of the global economy.
Weak U.S. industrial sector earnings last week pushed down stock markets and underscored concerns about the pace of the U.S. economic recovery and its impact on energy demand.
"The market is cautious about pushing oil prices higher because the demand fundamentals are still weak and the world economy is still fragile," said Ryuichi Sato, an analyst at Mizuho Corporate Bank.
U.S. crude for December delivery fell 47 cents to $80.03 by 0908 GMT (5:08 a.m. EDT), having earlier fallen as low as $79.57. It reached a 2009 high of $82.00 on October 21. Brent crude fell 38 cents to $78.54.
The dollar weakened against a basket of currencies, offering some support for oil .DXY. A Chinese report saying Beijing should increase its holdings of euros and yen in its foreign reserves knocked the U.S. currency.
China was again the bright spot for the global economic outlook, following comments by Vice Premier Li Keqiang that the country's economic recovery has consolidated after having performed better than expected.
Its strong economic growth was reflected in a 12.5 percent year on year jump in implied oil demand, the sixth rise in a row and first double-digit growth since August 2006.
The earnings season continues this week, offering more clues about the strength of economic recovery.
Energy, telecom and consumer goods companies will be in the spotlight with Exxon Mobil (XOM.N), Chevron Corp (CVX.N), Verizon Communications VX.N and Colgate-Palmolive (CL.N) among the companies due to report.
The oil price rally has caused some concern within the Organization of the Petroleum Exporting Countries, prompting some officials to raise the prospect of increasing its oil output.
OPEC will lift supply to protect the global economic recovery at a meeting in December if oil prices rise to $100, Jose Botelho de Vasconcelos, the group's president, said on Sunday.
