* Oil falls $1 but before recovering most losses
* U.S. stock index futures down 1 percent
* Euro zone in recession, official figures show
* Iran calls continued price drop "worrying"
(Recasts)
By Christopher Johnson
LONDON, Nov 14 (Reuters) - Oil slipped to $58 a barrel on
Friday as figures showing much of Europe had entered recession
refocused attention on the outlook for oil demand and as U.S.
stock market futures fell.
Benchmark U.S. crude futures for December <CLc1> fell to a
low of $57.11, down almost 2 percent or $1.13, before recovering
to $58.09 a barrel by 1220 GMT. The contract closed $2.08 higher
on Thursday.
London Brent crude for January <LCOc1>, the new front month,
lost $0.25 to $55.99.
Data on Friday showed the euro zone economy contracted 0.2
percent in the third quarter, officially confirming that the
15-nation bloc is suffering its first recession since the common
European currency was adopted. []
The figures had been widely anticipated by the market but
confirmed that consumers and industries alike were tightening
their belts and reducing their use of energy.
U.S. stock index futures were down more than 1 percent by
1215 GMT, suggesting the Dow Jones industrial average <>
would fall after rising more than 6.6 percent on Thursday. []
"We are moving up and down with the stock market because it
is our barometer of economic confidence," said Harry
Tchilinguirian, senior oil market analyst at BNP Paribas.
OPEC REIGNING IN PRODUCTION
Expectations that OPEC will cut output again late this month
also lent support but analysts said it was premature to conclude
the market had hit a bottom, pointing to high U.S. oil
stockpiles and slowing world oil demand growth.
"The latest oil movements data suggests OPEC are still
reigning in production," Robert Laughlin, senior oil analyst at
brokers MF Global, said in a note to clients.
"For the four weeks ending Nov. 29, cartel member exports
should fall by 60,000 bpd according to tanker traffic. It's
highly likely this trend will continue until a serious bout of
cold weather hits the West and maybe spurs some demand."
The price of oil has dropped almost two-thirds in value
since its July peak of $147.27, and on Thursday touched $54.67,
its lowest since Jan. 30, 2007.
Iran's OPEC governor said on Friday the Islamic Republic
would back any decision by the group for a further production
cut when it meets later this month in Cairo.
"The current oil market condition is worrying," Mohammad Ali
Khatibi was quoted as saying in the semi-official Mehr News
Agency.
He was speaking a day after an Iranian oil official told
Reuters members of the Organization of the Petroleum Exporting
Countries would meet in the Egyptian capital on Nov. 29.
OPEC cut output by 1.5 million barrels per day when it met
last month.
"If until the date of the meeting the oil price continues to
fall, a production cut will definitely be put on the agenda,"
Ali Khatibi said. []
Oil project investment worldwide could also be hampered by
continuing low prices, the head of the International Energy
Agency said on Friday, creating serious concerns about supply
growth when the global economy reverses its current slowdown.
"There are concerns that as (oil) prices fall, national oil
companies and oil majors may backtrack high-cost and difficult
projects," Nobuo Tanaka told an energy industry symposium in
Tokyo.
"The global economy may ultimately recover in a few years
and push up oil demand. If supplies do not catch up with that,
there may be serious consequences," Tanaka said. []
(Reporting by Christopher Johnson; editing by Anthony
Barker)
