Oil prices fell towards $57 a barrel on Thursday, after a 1-percent plus decline the previous day, as equity markets slipped, weighing on optimism for economic recovery and energy demand. Oil slid on Wednesday after disappointing US retail sales data prompted a more than 2 percent drop on Wall Street. Analysts said oil and equity markets would look towards the US government's weekly readings on jobless claims later in the day for further clues on the economy.
US crude fell 54 cents to $57.48 a barrel at 0619 GMT, and London Brent fell 33 cents to $57.01. The US government will release data on weekly jobless claims and April producer prices at 1230 GMT, followed by the consumer price index on Friday. Oil prices have been tracking equities markets closely in recent months as traders look to stocks for signs of an economic recovery that could lift ailing world fuel demand. A rally in stocks markets this year has helped lift crude prices almost 80 percent from a January low of $32.70.
Hopes for a quick rebound in the global economy also receded following a report of slumping European industrial output and a Bank of England forecast saying Britain needed a long period of healing. Crude fell even as Nigeria's main militant group threatened to attack oil companies in the Niger Delta following heavy clashes with security forces.
It extended the deadline for the companies to evacuate staff by another 48 hours. Oil's retreat from a six-month high on Tuesday also came despite the US Energy Information Administration's report showing US crude stocks fell 4.7 million barrels, confounding expectations for a 10th straight weekly build. Ailing demand for fuel has taken oil prices more than 60 percent off the record above $147 a barrel hit in July.
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