Brent futures down 1, WTI down 1.2
Demand concerns rise after weak US payrolls report
Risk of wider Middle East conflict limits oil39;s fall

SINGAPORE, Aug 5 Reuters Oil futures extended losses in a volatile session on Monday as fears of a recession in top oil consumer the United States offset supply worries stemming from mounting tensions in the Middle East, the world39;s largest oil producing region.

Share markets also tumbled across Asia as U.S. recession worries sent investors rushing from risk assets while wagering that rapid fire rate cuts will be needed to rescue growth.

Brent crude futures dropped 78 cents, or 1, to 76.03 a barrel by 0652 GMT, while U.S. West Texas Intermediate crude futures were at 72.65 a barrel, down 87 cents, or 1.2.

Brent and WTI tumbled more than 3 on Friday, with both contracts marking their fourth straight week of losses the biggest losing streaks since November.

U.S. recession fears, stemming from Friday39;s weak July payrolls report, only adds to Chinese demand concerns that have been lingering in the oil market for some time, ING analysts led by Warren Patterson said in a note.

Slumping diesel consumption in China, the world39;s biggest contributor to oil demand growth, is weighing on oil prices.

Oil also came under pressure after OPEC stuck to its plan to phase out voluntary production cuts from October, which means supplies will rise later this year, analyst say.

A Reuters survey showed on Friday that OPEC oil output rose…