* Rising global growth fears pull down Wall Street
* Chinese data stokes worries over oil demand outlook
* IEA expects deficit in oil supply by 2nd qtr next year
* U.S. oil drillers cut rigs for second week in row -Baker Hughes
(Updates with CFTC data)
By Stephanie Kelly
NEW YORK, Dec 14 (Reuters) - Oil prices dropped about 2 percent on
Friday, weighed down by falling U.S. stock markets, while weak
economic data from China pointed to lower fuel demand in the world's
biggest oil importer.
Brent crude futures fell $1.17 to settle at $60.28 a barrel, a
1.90 percent loss. U.S. West Texas Intermediate (WTI) crude futures
lost $1.38 to settle at $51.20 a barrel, a 2.62 percent loss.
Global benchmark Brent posted a weekly loss of almost 2.3 percent,
while WTI declined nearly 2.7 percent.
"The oil complex remains vulnerable to heavy selling into the
equities especially when combined with a strengthening in the U.S.
dollar as is the case so far today," Jim Ritterbusch, president
of Ritterbusch and Associates, said in a note.
U.S. equity markets broadly fell as China's November retail sales
grew at their weakest pace since 2003 and industrial output rose the
least in nearly three years. The report added to nerves about
U.S.-China trade relations.
Chinese oil refinery throughput in November fell from October,
suggesting an easing in oil demand, though runs were 2.9 percent above
"Oil came under pressure out of poor economic data from China
overnight, dampening enthusiasm for good oil demand growth in 2019 in
light of a currently oversupplied market," said Andrew Lipow,
president of Lipow Oil Associates in Houston.
Concerned by mounting oversupply, the Organization of the
Petroleum Exporting Countries and other oil producers, including
Russia, agreed last week to reduce output by 1.2 million barrels per
day (bpd), or more than 1 percent of global demand.
U.S. energy firms cut four oil rigs in the week to Dec. 14,
General Electric Co's Baker Hughes energy services firm said in its
closely followed report on Friday. The data is seen as an indicator
of future production.
The International Energy Agency said on Thursday it expected a
deficit in oil supply by the second quarter of next year, provided
OPEC members and other key producers stuck closely to last week's deal
to cut output.
As part of the agreement, de facto OPEC leader Saudi Arabia plans
to reduce its output to 10.2 million bpd in January.
The IEA kept its 2019 forecast for global oil demand growth at 1.4
million bpd, unchanged from its projection last month, and said it
expected growth of 1.3 million bpd this year.
Barclays said on Friday it expects oil prices to rebound in the
first half of 2019 on falling inventories, Saudi Arabia's export cuts
and an end to the Iran sanction waivers.
Hedge funds cut bullish wagers on U.S. crude to the lowest levels
in more than two years in the week to Dec. 11, the U.S. Commodity
Futures Trading Commission (CFTC) said on Friday.
(Additional reporting by Christopher Johnson in London and Koustav
Samanta in Singapore; Editing by Phil Berlowitz, Chris Reese and
((Stephanie.Kelly@thomsonreuters.com; 646-223-4471; Reuters