Oil falls towards $58 on econ fears, eyes dollar
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PERTH (Reuters) - Oil fell towards $58 a barrel on Monday, reversing some of the previous session's near 3 percent gains, as investors took profit amid warnings that any global recovery will only be gradual.Oil rose more than 3 percent on Friday to touch a near six-month high as economic data showed fewer-than-expected jobs were lost in April and stress test results lifted some uncertainty over the health of major American banks.U.S. crude fell 47 cents to $58.16 a barrel by 0533 GMT. The contract rose $1.92 to settle at $58.63 on Friday.London Brent crude fell 31 cents to $57.83."Oil prices are driven by perceptions that the economic outlook is less pessimistic that previously thought. But the growth numbers we could be seeing from developed economies may not justify such price levels," said David Moore, a commodities strategist at Commonwealth Bank of Australia.
Still, encouraging news from China, the world's third-largest economy, helped support oil at above $58 a barrel.A top China central banker said the government's stimulus plan has worked better than expected, while crude imports data showed a spike in demand.
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