Oil fell below $66 on Friday, in line with broad falls on global markets after data showing the U.S. economy contracted and consumer spending had declined, with knock-on effects for fuel demand.

U.S. light crude fell 95 cents to $65.99 a barrel by 1325 GMT, pulling back from its gains ahead of the release of the economic data.

London Brent crude dropped by $1.43 to $68.68.

U.S. gross domestic product fell 1.0 percent in the second quarter, with consumer spending falling 1.2 percent, the U.S. Commerce Department said.

Although the contraction was smaller than expected the January-March GDP was revised down to a 6.4 precent drop from the previously reported 5.5 percent fall.

With the contraction in the second quarter, U.S. GDP has fallen for four straight quarters for the first time since government records started in 1947.

“The GDP reading did come better than expected, but the stabilisation is coming off a downward revised first quarter number,” Harry Tchilinguirian, oil analyst with BNP Paribas, said.

“Spending is worse than expected so economic activity in the U.S. is still not supportive for oil demand.”

European shares turned negative after the data and U.S. stocks opened weaker.

Oil prices were poised to mark their first monthly fall since January, which is likely to be about 4 percent.

In the United States, the world’s largest energy consumer, crude inventories have risen and oil refinery utilisation rates have remained lower than normal as economics for refining have been poor and fuel demand has been weak.

U.S. crude oil imports in May fell to the lowest level for the month in 12 years. In Japan, the world’s third largest oil consumer, fuel sales fell in June, dropping for the 13th consecutive month.

LONDON, July 31 (Reuters)