* Oil on track to post first weekly gain in four weeks
* Dollar index <.DXY> up 0.36 pct
* China June refinery output at new record
(Updates detail, prices, changes dateline, pvs PERTH)
LONDON, July 17 (Reuters) - Oil fell below $62 a barrel on
Friday, undermined by concerns over the outlook for the world
economy and by a stronger dollar, which rose ahead of a raft of
U.S. corporate results.
But oil prices were still on track for a gain of about 3
percent on the week, snapping four straight weeks of declines
thanks to stronger equities markets, better corporate results
and some positive economic data, particularly from Asia.
U.S. crude oil for September delivery <CLc1> was down 37
cents at $61.65 a barrel by 0847 GMT. London Brent crude fell 50
cents to $63.25 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 upbeat corporate earnings and a report showing strong
growth in China, the world's second biggest consumer of energy.
But a rise in the dollar against most other currencies on
Friday took some of the shine off oil as traders digested news
of the bombing of two hotels in the Indonesian capital, Jakarta,
which encouraged a flight to safety.
CORPORATE RESULTS
The dollar was also firmer ahead of U.S. corporate results
on Friday, including Citigroup <C.N>, General Electric <GE.N>
and Bank of America <BAC.N>, which analysts say could provide
some upside surprises.
Oil often moves inversely to the dollar as a rise in the
U.S. currency makes oil more expensive to many consumers.
Economic data are sending mixed messages about the pace of
recovery from recession.
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. []
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 said the
United States would need a second fiscal stimulus, possibly by
the end of this year, as the unemployment rate approaches 10
percent. []
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 are down nearly $10 since early July, partly
reversing last quarter's 40 percent surge on concerns over
energy demand, which has contracted for the first time in a
quarter century under the weight of the 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.
Economic on Friday will 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 is faring.
(Reporting by Christopher Johnson in London and Fayen Wong in
Perth; editing by Michael Kahn)
