Oil prices fell towards USD 58 on Friday as news of a deepening recession for Europe further dampened hopes of a quick rebound in energy demand, analysts said.
New York's main futures contract, light sweet crude for delivery in June, dropped 27 cents to USD 58.35 a barrel after rising earlier on Friday in line with firmer stock markets.
Brent North Sea crude for July delivery shed 52 cents to USD 58.07. The June contract expired yesterday priced at USD 56.69.
"Markets were a little lower ... after data from Europe disappointed," said Nimit Khamar, energy analyst at Sucden brokers in London.
The 16 nation eurozone economy contracted a record 2.5 per cent in the first quarter as Europe lurched deeper into recession while Germany suffered its biggest blow for 40 years.
Accounting for a third of eurozone output, Germany contracted 3.8 per cent in the first three months compared to the final quarter of 2008, when the economy shrank 2.2 per cent, the statistics office said.
France, Germany's main partner and the second-biggest eurozone economy, meanwhile entered recession as output fell 1.2 per cent after a 1.5 per cent drop in the last quarter of 2008.
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