* Oil rebounds by more than $1/bbl after 4 pct overnight
fall
* Hopes of more cuts at OPEC meeting next week
* Bearish data likely from US energy weekly inventory
report
By Jennifer Tan
SINGAPORE, Dec 10 (Reuters) - Oil rebounded by more than $1
a barrel to under $44 in light bargain hunting on Wednesday,
after slumping 4 percent overnight on the back of lowered
forecasts for U.S. energy demand and fears of a deepening
global recession.
The market is looking ahead to producer cartel OPEC's Dec.
17 meeting, which is expected to agree more output cuts to
boost prices, and the release of the U.S. energy department's
weekly inventory report later on Wednesday, which is likely to
show rising crude stocks.
U.S. crude for January delivery <CLc1> was up $1.26 at
$43.33 a barrel by 0235 GMT, off a session high of $43.40,
after falling $1.64, or 3.75 percent, to settle at $42.07 a
barrel on Tuesday. London Brent crude <LCOc1> was up 98
cents at $42.51.
"After last night's fall, we could be seeing some
bargain-hunting, but the volumes are not large. Overall, there
are no bullish factors to push up prices right now," said Ken
Hasegawa, a commodity derivatives sales manager at broker
Newedge in Tokyo.
"The economic picture is weighing on the market, and the
market is in waiting mode for next week's OPEC meeting."
U.S. stocks sank on Tuesday as negative retail sales data,
tepid home sales figures and profit warnings from firms sent
investors scrambling for the exits, ending a two-day rally that
had raised hopes the stock market may have hit a cyclical
bottom.
Reinforcing the gloomy economic backdrop, Japan sank
further into recession in the third quarter, while fresh
indicators from Britain and France underscored the deepening
economic contraction in Europe, and Canada declared itself in
recession on Tuesday.
In its monthly energy outlook, the U.S. Energy Information
Administration said it expected global oil demand to fall
50,000 barrels per day in 2008 and 450,000 bpd in 2009 --
marking the first drop in world oil demand year-to-year since
1983.
The lower forecast came as the EIA revised its 2009 world
GDP growth estimate down to 0.5 percent from 1.8 percent last
month.
The U.S. Energy Information Administration's (EIA) weekly
inventory data due later on Wednesday will show that crude
stocks rose 1.0 million barrels, according to an expanded poll
of 13 analysts by Reuters.
"The bearish data from the EIA tonight could put some
downward pressure on crude prices, but we do not expect any big
moves," Hasegawa said.
Producer grouping OPEC, which has faced a slide of more
than $100 a barrel in oil prices since July, has already agreed
to cut about 2 million bpd of production to support prices, and
members are leaning toward more supply cuts at the Algeria
meeting. []
OPEC kingpin Saudi Arabia, which has cited $75 a barrel as
a "fair price" for oil, will make bigger supply cuts to some of
its Asian and European customers next month, as it redoubles
efforts to arrest the steep slide in prices. []
"The market could be trading on some optimism that OPEC
might agree to cut more than 2 million barrels per day at next
week's meeting, but we don't think the rally is sustainable,"
Hasegawa added.
(Editing by Clarence Fernandez)
(jennifer.tan@thomsonreuters.com; +65-6417 4679; Reuters
Messaging: jennifer.tan.reuters.com@reuters.net)
