* Market holidays in U.K. and U.S.
* Coming Up: Euro zone sentiment survey; 0800 GMT
* For a technical view, click []
(Adds Chinese Premier's comment, hurricane Agatha)
By Judy Hua
SINGAPORE, May 31 (Reuters) - Oil prices rose above $74 a
barrel in thin trade on Monday as worries about euro zone
economic stability fuelled the worst monthly loss for the
commodity since December 2008.
U.S. crude <CLc1> for July delivery rose 34 cents to $74.31
by 0443 GMT, after settling down 58 cents on Friday, when a
downgrade of Spain's credit ratings and disappointing U.S.
economic data fuelled investor caution about riskier assets
like oil. []
Front-month crude fell $12.18, or 14.1 percent, in the
month of May, the biggest monthly percentage loss since
December, 2008, when prices fell 18.1 percent.
London Brent crude <LCOc1> rose 39 cents to $74.41 a
barrel. Front-month Brent crude was down $13.42, or 15.4
percent for the month, the biggest monthly percentage decline
since November, 2008.
Trading was curtailed on Monday with markets in the U.S.
and U.K. closed on Monday for public holidays.
Chinese Premier Wen Jiabao warned on Monday that global
economic growth remained vulnerable to sovereign debt risks and
the possibility of a second downturn, while saying China's
growth remains on track. []
Fitch Ratings downgraded Spain's sovereign credit rating by
one notch on Friday, saying the country's economic recovery
would be "more muted" than government forecasts due to
austerity measures. []
"It's not a shocking thing any more. People get a pretty
good idea because in general the feeling is that even the
$1-trillion rescue package is not going to solve the problem.
It's just confirming what they already know," said Clarence
Chu, a trader at Hudson Capital in Singapore.
"We expect the market to be very quiet with very low
volume, unless there is some breaking news," Chu said."The oil
prices usually move in a tight range during long holidays."
The euro stabilised against the dollar on Monday but
remained under downward pressure from the Spain credit
downgrade. []
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
For a crude oil technical chart, see:
http://graphics.thomsonreuters.com/gfx/WT_20103105084133.jpg
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
A Reuters survey on Friday showed that Organization of
Petroleum Exporting Countries, or OPEC, oil supplies to the
market rose in May to the highest in 17 months, suggesting a
price slide has yet to spur closer adherence to agreed output
targets. []
Nawal al-Fuzaia, Kuwait's national representative to OPEC,
said crude oil prices could fall to $60 a barrel due to global
economic instability. []
In a sign of bearish sentiment for oil prices, money
managers cut net crude oil long positions on the New York
Mercantile Exchange by 12,558 positions in the week to May 25,
Commodity Futures Trading Commission data showed on Friday.
[]
Commodities in May had their steepest monthly decline in 18
months, with a key sector index down more than 8 percent as the
European crisis roiled energy, metals and agricultural markets,
the Reuters-Jefferies CRB index <.CRB> showed. []
Traders are keeping an eye on forecasts for the Atlantic
hurricane season that have revived concerns of disruption to
supplies in the Gulf of Mexico, where BP <BP.L> was trying to
plug a gushing oil well.
Agatha, the first named storm of the 2010 Pacific hurricane
season, slammed into the Guatemalan coast near the border with
Mexico on Saturday, killing at least 96 people in Central
America. []
Investors are also looking ahead to demand figures as the
U.S. driving season, when motor fuel demand reaches its annual
peak, started at the weekend and runs until Labor Day in early
September.
(Reporting by Judy Hua; Editing by Clarence Fernandez)
