* Chinese industrial output falls in May vs April
* Technical outlook points to further falls
* Coming Up: U.S. retail sales for May; 1230 GMT
(Changes dateline to LONDON, previous SINGAPORE, recasts)
By Emma Farge
LONDON, June 11 (Reuters) - Oil prices fell to near $75 a
barrel on Friday after gaining about 5 percent this week as
investors weighed prospects that the European debt crisis could
slow fuel demand growth even in emerging markets such as China.
News that the world's no. 2 oil consumer China saw overall
exports surge 48.5 percent last month helped boost prices in the
previous session.
But data on Friday showed that China's industrial output
slowed in May from April, reviving concerns that the economy
could be overheating. []
Most analysts are poised for a slowdown in the pace of fuel
demand recovery in the euro zone, making the market increasingly
reliant on China as the growth driver, while at the same time
hindering its potential to play such a role.
U.S. crude for July <CLc1> fell 41 cents to $75.07 a barrel
by 0951 GMT, despite an early rally in European equities.
ICE Brent <LC0c1> rose 26 cents to $75.55 a barrel.
"We are currently stabilising towards the top end of the
recent range but it seems to be having trouble getting higher
than this," said Christopher Bellew of Bache Commodities.
"Sentiment is still fairly fragile and people are worried
about the depth of the European crisis."
MID-RANGE
At near $75 a barrel, oil prices are now in the middle of
what Saudi Arabia's oil minister calls the "ideal realm" between
$70-$80 a barrel.
Oil prices have risen for the past three sessions and are
now around $10 above the low touched in May during the steep
sell-off across the energy complex.
But prices are still nearly 15 percent below the 19-month
high of $87.15 touched in early May.
Technical analysts expect oil U.S. crude prices to retrace
to around $73.70 a barrel. []
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For a graphic on the technical outlook, click here:
http://graphics.thomsonreuters.com/gfx/WT_20101106091036.jpg
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Sentiment was briefly lifted on Thursday after the
International Energy Agency (IEA) revised up its 2010 demand
growth forecast on better U.S. demand for diesel and ongoing
strength in the Chinese economy. []
The IEA is more optimistic than the other two main
forecasters the Organization of the Petroleum Exporting
Countries and the Energy Information Administration.
For a comparative table of forecasts see: []
On the supply side, concerns about the impact of BP's Gulf
of Mexico oil spill on future underwater oil development are
also supporting oil prices, analysts said.
The IEA estimates that between 100,000 and 300,000 barrels
per day (bpd) of new projects could be delayed by 2015 if there
were an extended moratorium on new drilling. []
The flow rate from the spill could be as high as 40,000 bpd
-- twice as much as previously thought -- according to U.S.
scientists. []
Separately, OPEC member Nigeria's main militant group said
its fighters clashed with soldiers in the creeks of the
oil-producing Niger Delta on Thursday, but the military denied
that any such shoot-out had taken place. []
(Additional reporting by Alejandro Barbajosa in Singapore;
Editing by Alison Birrane)
