KUALA LUMPUR, Jan 19 Reuters Oil futures fell by nearly 1 on Thursday, extending losses from the previous day, as a surprise jump in U.S. crude stocks weighed on the market along with fears of a recession that were heightened by disappointing U.S. retail sales and output data.

Brent crude futures were last down 84 cents, or 1, to 84.14 a barrel at 0710 GMT, after earlier easing to 83.76. U.S. West Texas Intermediate WTI crude futures also declined 91 cents, or 1.1, to 78.57 a barrel. It earlier fell to a low of 78.13.

The deterioration in U.S. economic data darkened the oil demand outlook as recession fears mount again. Riskoff sentiment has sent growthsensitive commodities down, said Tina Teng, an analyst at CMC Markets, adding that profittaking could have played a part also.

U.S. December retail sales fell by the most in a year, while

manufacturing output recorded its biggest drop in nearly two years, as higher borrowing costs hurt demand for goods.

Still, Federal Reserve officials said interest rates needed to rise beyond 5 even as inflation shows signs of having peaked and economic activity is slowing.

This raised the spectre of a recession, with risk appetite suffering as a consequence, ANZ Research analysts said in a client note.

Adding to the pall, data from the American Petroleum Institute showed U.S. crude oil inventories rose by about 7.6 million barrels in the week ended Jan. 13, according to market sources.

The mean average forecast from a…