Oil prices ease on higher shale output forecast, demand concerns

SEOUL (Reuters) - Oil futures prices dipped slightly in thin trade on Friday as forecast higher production by U.S. shale oil producers this year added to lingering worries over demand.

U.S. July crude shed 6 cents to $60.39 a barrel as of 2157 ET after closing up 53 cents in the previous session.

Brent crude for August fell 14 cents to $64.12 a barrel, having settled up 39 cents on Thursday.

U.S. shale oil producers have projected a rise in output for the year even as they have scaled back drilling to cope with a near 45 percent slump in crude prices.

The potential for increased imports to the United States could also pressure U.S. oil prices.

"The narrowing of the Brent/WTI spread is improving the economics of imports rather than domestic purchases," ANZ said on Friday. It noted U.S. rail volumes of crude oil and petroleum dropped 12 percent year on year last week as higher imports slow purchases from regions such as North Dakota.

Demand for oil products remain weak.

Brazil's state-run Petrobras is again importing gasoline and selling it locally at a loss, but falling demand means it will be hard to adjust the price to be in line with international levels, a source told Reuters.

In Asia, its gasoil cargo market is likely headed for its worst quarter in more than five years as supply mounts and the region's largest consumers slow their demand.

Saudi Arabia's Oil Minister Ali al-Naimi said he is optimistic about the coming months given increased global demand. Naimi also noted a reduction in the level of commercial stocks, and an improvement in prices.

Russia, the second biggest oil supplier to the global markets, and Saudi, the world's biggest oil exporter, plan to discuss a broad cooperation agreement at an economic forum in St Petersburg.

Asian shares held firm and the dollar remained on the defensive on Friday as investors bet the U.S. Federal Reserve will not raise interest rates too soon. [MKTS/GLOB]

Chinese Vice Finance Minister said that he hoped for China and the United States to better coordinate their macroeconomic policies, adding that countries with the scope to expand their fiscal policy should do so actively.

Euro zone leaders will hold an emergency summit on Monday as Greece and its international creditors failed to make any breakthrough on a debt deal on Thursday.

(Reporting by Meeyoung Cho; Editing by Richard Pullin and Michael Perry)