* Oil on track to post first weekly gain in 4 weeks
* China June refinery output at new record
* Key US factory index slips, jobless claims tumble
(Updates prices, China June refinery output)
By Fayen Wong
PERTH, July 17 (Reuters) - Oil fell below $62 a barrel on
Friday amid lingering scepticism over the pace of a global
economic recovery, but prices are on track to snap four
straight weeks of decline to post a weekly gain.
Helped by a rally in the equities markets and some positive
economic data, oil is on course to rise about 2.8 percent this
week, partially reversing last week's drop of 10.3 percent,
which was the highest weekly decline since early February.
U.S. crude oil for September delivery <CLc1> fell 42 cents
to $61.60 a barrel by 0636 GMT. London Brent crude fell 42
cents to $63.33 a barrel.
"Sentiments on oil are split between those who believe a
recovery is on its way and therefore prices should climb
higher, and those who are looking at the supply-demand
fundamentals and believe that the market is still very weak,"
said Victor Shum, a Singapore-based analyst at Purvin & Gertz.
Oil's gains on Thursday were helped by a rise on Wall
Street following more upbeat corporate earnings and a report
that showed strong economic growth in China, the world's second
biggest consumer of energy.
"Generally, I think the market still needs more positive
economic indicators to be convinced of a sustainable recovery,"
Shum said.
The number of Americans filing for jobless benefits fell to
the lowest level since January last week, a decline linked to
upheaval in the auto industry, while a key regional
manufacturing index slipped more than expected in July, reports
showed on Thursday. []
In China, refiners in the world's No.2 energy consumer
boosted production by 6 percent in June to a record high after
a rise in domestic motor fuel prices aided margins, although
higher inventories and rising exports suggested domestic demand
was lagging. []
Oil prices remain down nearly $10 since early July --
partially reversing last quarter's 40 percent surge -- amid
lingering concerns about global energy demand, which has been
contracting for the first time in a quarter century under the
weight of the economic recession.
U.S. government data this week showing a swelling in
gasoline stockpiles in the week of July 10 despite the July 4
Independence Day holiday when the summer driving season
typically peaks, remains a stark reminder for investors that
demand in the world's top energy consumer is still tepid at
best.
Nouriel Roubini, one of the few economists who accurately
predicted the magnitude of the financial crisis, said on
Thursday the worst of the turmoil had passed, but emphasized
the U.S. would still need a second fiscal stimulus, possibly by
the end of this year, as the unemployment rate quickly
approaches 10 percent. []
In Nigeria, France's Total <TOTF.PA> has declared force
majeure on cargoes of Nigerian Amenam crude oil loading from
the middle of July due to technical problems. []
Economic data due out later on Friday include the U.S.
housing building permits for June and the U.S. ECRI weekly
index, which will be keenly watched by investors to gauge how
the economy was faring.
(Reporting by Fayen Wong; Editing by Clarence Fernandez)
