Oil Falls Below $60 as Investors Await Earnings

New York, NY, July 10, 2009--Oil prices dropped below $60 a barrel Friday as investors anticipate company earnings reports next week that will provide clues on the strength of crude demand.

While global appetite for crude over the next few months remains unclear, expectations are that it will increase by next year, with the International Energy agency predicting a 1.7 percent rebound in demand by next year.

Benchmark crude for August delivery was down 69 cents at $59.72 a barrel by midday European electronic trading on the New York Mercantile Exchange. On Thursday, the contract rose 27 cents to settle at $60.41.

Oil has bobbed near $60 a barrel the last two days after dropping from an eight-month intraday high of $73.38 on June 30 on investor concern that a rally since March wasn't justified by weak global crude demand.

The Paris-based IEA said global oil demand will increase by 1.4 million barrels a day in 2010 to 85.2 million barrels a day -- a "strong rebound" that would be led by growth in developing countries.

The IEA left its forecast for 2009 oil demand unchanged, and still expects it to drop 2.9 percent.