UPDATE 7-Oil prices dip on demand worries

                                
 * OPEC expects demand to stay weak
                                
 * U.S. July 4 holiday gasoline demand down 4.3 pct
                                
 * U.S. crude stocks set to fall for a 6th straight week
 (Updates prices, details)
                                
 By Richard Valdmanis
                                
 NEW YORK, July 14 (Reuters) - U.S. oil prices dipped into
negative territory on Tuesday as dealers worried a slow and
bumpy economic recovery could delay a rebound in ailing world
energy demand.
                                
 U.S. crude <CLc1> fell 40 cents to $59.29 a barrel by 1810
GMT, extending a decline that shaved 11 percent from the price
last week. London Brent crude <LCOc1> fell 6 cents to $60.63.
                                
 The losses came after U.S. data showed disappointing U.S.
consumer spending in June alongside a larger-than-expected
increase in producer prices -- a reflection of inflation.
[ID:nN14252432]
                                
 Adding gloom to the economic outlook, developed countries
are expected to lose nearly 30 million jobs from the end of
2007 to the end of 2010, the Organization for Economic
Cooperation and Development said. [ID:nSPG002413]
                                
 "When the 'wealth effect' disappears and the savings rate
goes from negative to positive that suggests to me consumers
are still stunned and not about to return to their erstwhile
profligacy any time soon," said Mike Fitzpatrick, vice
president at MF Global in New York.
                                
 In a sign of soft demand in leading energy user the United
States, Mastercard SpendingPulse said on Tuesday that gasoline
consumption over the peak travel July 4 holiday was 4.3 percent
lower than a year ago. [ID:nNYS005233]
                                
 The Organization of the Petroleum Exporting Countries,
meanwhile, said world demand for its oil would fall by 380,000
barrels per day to 28.11 million in 2010 compared with this
year. [ID:nLE49961]
                                
 For the nearer term, the market will look to U.S. inventory
data for release by the American Petroleum Institute on Tuesday
and the U.S. Energy Information Administration
 Wednesday.
                                
 Analysts polled by Reuters predicted crude stocks would
have fallen for a sixth straight week, but distillate
inventories -- which include diesel and are already at a nearly
25-year high -- were expected to rise again. [EIA/S]
                                
 Gasoline stocks were also expected to rise.
                                
 Some analysts identified the widening offensive by
Nigeria's main militant group against Africa's largest oil
producer as a bullish factor that could limit supplies.
[ID:nLD48147]
                                
 The Movement for the Emancipation of the Niger Delta (MEND)
sabotaged an oil dock in Lagos state, killing five people in
the group's first attack outside the Niger Delta since it began
its latest campaign.
 (Additional reporting by Fayen Wong in Perth and Emma Farge in
London; Editing by Christian Wiessner)