* Oil prices extend losses to fifth session
* Brent hits lowest since early February
* Traders eyeing weekly U.S. crude inventory reports
(Updates throughout, changes dateline, previous SINGAPORE)
By Amanda Cooper
LONDON, July 28 (Reuters) - Oil prices fell for a fifth
straight session on Tuesday to their lowest in almost six
months, as a rout in Chinese equities cast further doubt over
the outlook for crude demand in the world's top commodities
consumer.
China's already-volatile benchmark stock index .SSEC , with
a combined market capitalisation of $4.6 trillion, has lost 10
percent in the last two days of trade.
Most household debt is linked to real estate rather than the
stock market, but with Chinese economic growth struggling to
stick at 7 percent, analysts say demand for crude may not be
enough to help mop up a global supply glut.
"Typically, equity markets do have a high correlation to
quarterly GDP growth," Deutsche Bank (XETRA:DBKGn) strategist Michael Lewis
said.
"Naturally, there is some risk that this could spill into
the real economy. The more these things go down on a day-by-day
basis, that is starting to affect the potential of Chinese
demand growth being weaker."
Brent LCOc1 had fallen 78 cents to $52.69 a barrel by 0821
GMT, having hit a session low of $52.28, its lowest since early
February, bringing the losses for July to nearly 18 percent.
Brent crude is on track for its longest stretch of daily
losses since March, when the price hovered just dollars away
from six-year lows.
U.S. crude CLc1 was last down 36 cents at $47.03 a barrel
after ending the previous session down 75 cents.
Adding to the uncertainty over the health of the Chinese
economy is concern about rising global oil production in a
market already oversupplied by some 2 million barrels a day.
Investors are watching for weekly data on U.S. inventory
levels to gauge the strength of demand.
U.S. commercial crude oil stocks likely slipped last week
after crossing the five-year seasonal average build in the
previous week, a preliminary Reuters poll of analysts showed
ahead of industry and official weekly reports. ID:nL3N1075ES
Crude stocks fell about 300,000 barrels to 463.6 million
barrels in the week ended July 24, analysts estimated.
"We're not seeing the level of demand in the U.S. one
usually expects related to the summer drive-time," said Jonathan
Barratt, chief investment officer at Sydney's Ayers Alliance.
"The world is awash with oil."