Oil slipped below $62 a barrel on Friday, undermined by concerns over the outlook for the world economy, a stronger dollar and some selling pressure after four days of gains.

Oil was still on track for a gain of about 3 percent on the week, snapping four straight weeks of declines thanks to stronger equities markets, better corporate results and some positive economic data, particularly from Asia.

U.S. crude oil for September delivery was down 48 cents at $61.54 a barrel by 1149 GMT (7:49 a.m. EDT). London Brent crude fell 44 cents to $63.31.

There is a fair amount of profit-taking after a week of rises, said a dealer at a oil brokerage in London. The fundamentals remain in question and I think we could see the market below $60 again next week.

U.S. corporate results helped dampen sentiment on Friday with lower earnings from Bank of America and General Electric .

Some analysts had suggested Friday's results could provide some upside surprises after strong figures earlier this week from Goldman Sachs .

Oil's gains on Thursday were helped by a rise on Wall Street following a report showing strong growth in China, the world's second biggest consumer of energy.


But a rise in the dollar against most other currencies on Friday helped undermine the market. Oil often moves inversely to the dollar as a rise in the U.S. currency makes oil more expensive to many consumers.

Economic data are sending mixed messages about the pace of recovery from recession.

The number of Americans filing for jobless benefits fell to the lowest level since January last week while a key regional manufacturing index slipped more than expected in July, reports showed on Thursday.

Nouriel Roubini, one of the few economists who accurately predicted the magnitude of the financial crisis, said on Thursday the worst of the turmoil had passed, but said the United States would need a second fiscal stimulus, possibly by the end of this year, as the unemployment rate approaches 10 percent.

In China, refiners in the world's No.2 energy consumer boosted production by 6 percent in June to a record high after a rise in domestic motor fuel prices aided margins, although higher inventories and rising exports suggested domestic demand was lagging.

Oil prices are down nearly $10 since early July, partly reversing last quarter's 40 percent surge on concerns over energy demand, which has contracted for the first time in a quarter century under the weight of the recession.

U.S. government data this week showing a swelling in gasoline stockpiles in the week of July 10 despite the July 4 Independence Day holiday when the summer driving season typically peaks, remains a stark reminder for investors that demand in the world's top energy consumer is still tepid. (Additional reporting by Fayen Wong in Perth; editing by Jon Boyle)